BlackRock Plans to Seed iShares Bitcoin Trust, Fueling Speculation of a Spot Bitcoin ETF Launch
BlackRock, the world’s largest asset manager, has revealed in an amendment to its iShares Bitcoin Trust prospectus that it plans to start seeding this month. This development has sparked speculation about the possibility of a Spot Bitcoin ETF launching soon.
How Seeding Indicates an Imminent Approval
Bloomberg analyst Eric Balchunas points out that the mention of seeding in BlackRock’s amendment is significant because it was not included in the original filing. Seeding refers to providing initial funding to purchase a few creation units of Bitcoin in exchange for ETF shares that can be traded on the open market from day one. While the amount of money involved in seeding is typically not substantial, the fact that BlackRock is starting the process and disclosing it suggests progress towards launching the ETF.
Predictions of Approval and Other Positive Signs
Balchunas and fellow Bloomberg Analyst James Seyffart had previously predicted that the US Securities and Exchange Commission (SEC) could approve a Spot Bitcoin ETF as early as next year. They maintain this belief, with Seyffart stating that there is still a likelihood of approval by January 10, 2024, which coincides with the SEC’s deadline for the ARK 21Shares Spot Bitcoin ETF. Additionally, BlackRock’s iShares Bitcoin Trust has been listed on the Deposit Trust & Clearing Corporation (DTCC), indicating progress towards launching an ETF.
The Impact on Bitcoin and Market Sentiment
These developments have contributed to bullish sentiment surrounding Bitcoin, leading to its price reaching highs of $35,000. Currently trading at around $34,500, Bitcoin has seen an increase of over 11% in the last 24 hours.
Hot Take: Spot Bitcoin ETF on the Horizon?
The revelation of BlackRock’s plans to seed its iShares Bitcoin Trust and the progress made towards launching an ETF have fueled speculation about the approval of a Spot Bitcoin ETF. While it is not guaranteed, these developments indicate positive momentum and suggest that a Spot Bitcoin ETF may become a reality in the near future. The potential launch of such an ETF could have significant implications for the cryptocurrency market, providing investors with more accessible and regulated exposure to Bitcoin.
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