BlackRock Seeding Spot-Based Bitcoin ETF As Financial Giant Gears Up To Launch BTC Trust: Bloomberg Analyst
A senior ETF analyst at Bloomberg, Eric Balchunas, has reported that BlackRock is in the process of “seeding” its spot Bitcoin exchange-traded fund (ETF). This information was revealed in a recent amendment to BlackRock’s filing with the U.S. Securities and Exchange Commission (SEC) for their iShares Bitcoin Trust application.
Balchunas explains that “seeding” an ETF involves providing initial funding through a bank or broker-dealer to purchase a few creation units of Bitcoin. These units are then exchanged for ETF shares that can be traded on the open market from day one. However, Balchunas clarifies that seeding typically involves a small amount of money and should not be seen as BlackRock buying a significant amount of Bitcoin.
The analyst notes that seeding often occurs when ETFs are preparing for launch. He also highlights that the iShares Bitcoin Trust has been listed on the Depository Trust & Clearing Corporation (DTCC), which clears trades for the Nasdaq. The ETF’s ticker will be IBTC.
Hot Take: BlackRock Seeding Spot-Based Bitcoin ETF Signals Progress in Launch Preparation
BlackRock’s decision to seed its spot-based Bitcoin ETF indicates that the financial giant is making significant progress in preparing for the launch of its BTC Trust. Although seeding involves only a small amount of money, it demonstrates BlackRock’s commitment to entering the cryptocurrency market. By disclosing this information, BlackRock is taking another step forward in the process of launching its Bitcoin ETF. The listing of the iShares Bitcoin Trust on DTCC further strengthens BlackRock’s position and suggests that they are positioning themselves for success in the cryptocurrency industry. With these developments, it is clear that BlackRock is actively exploring opportunities in the digital asset space.
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