Blackrock Announces Strategy to Allocate $10 Million for Launching Spot Bitcoin ETF on January 3rd

Blackrock Changes Spot Bitcoin ETF Filing

Blackrock, the world’s biggest asset manager, has made changes to its spot bitcoin exchange-traded fund (ETF) after engaging in six meetings with the U.S. Securities and Exchange Commission (SEC). The company filed an amendment to its registration statement on Friday, revealing plans to seed the Ishares Bitcoin Trust with $10 million on January 3, 2024. Initially, Blackrock had intended to use the in-kind model for its ETF, but has now opted for the cash creation model in response to the SEC’s concerns.

Bloomberg Analyst Comments on Blackrock’s Plans

Analysts from Bloomberg have commented on Blackrock’s filings and plans. James Seyffart noted on Twitter that the company is planning to make moves on January 3rd and will be seeding its ETF with $10 million. He speculates that this could indicate an imminent launch of the Ishares Bitcoin Trust. Eric Balchunas adds that the SEC wants authorized participants to be named in the filing updates, potentially favoring applicants who have adopted the cash creation model. He emphasizes that this is a crucial step for approval.

Blackrock Meets SEC Multiple Times for ETF Approval

In the past month, Blackrock has held several meetings with the SEC and filed three amendments to its spot bitcoin ETF. The asset manager initially sought approval for the in-kind model but failed to convince the regulator. The deadline for the first spot bitcoin ETF approval is January 10th, and some expect multiple approvals to be granted by that date.

Hot Take: Blackrock Seeks Approval for Cash Creation Model in Spot Bitcoin ETF Filing

Blackrock is amending its spot bitcoin ETF filing to address the SEC’s concerns. By opting for the cash creation model, the asset manager plans to seed the Ishares Bitcoin Trust with $10 million on January 3rd. Analysts speculate that this move could signal an imminent launch of the ETF. The SEC is requesting authorized participants to be included in filings, giving applicants with the cash creation model an advantage. With multiple meetings and amendments, Blackrock strives to secure approval in time for the January 10th deadline.