Bitwise to Seed Spot Bitcoin ETF with $200 Million
Bitwise has submitted an amended filing (S-1) to the SEC, revealing its plan to seed its spot Bitcoin exchange-traded fund (ETF) with $200 million, surpassing Blackrock’s $10 million commitment for its ETF. Bitwise’s spot Bitcoin ETF, which will trade under the ticker symbol BITB, has garnered interest from an unnamed entity looking to purchase up to $200 million worth of shares. Bloomberg ETF analyst Eric Balchunas highlighted the significance of Bitwise’s filing on social media, noting the substantial monetary injection compared to Blackrock’s. However, Bitwise acknowledged that the potential purchaser is not obligated to make the indicated purchase.
Competition from Blackrock and Crypto Predictions
Last week, Blackrock also filed an amended document with the SEC, announcing its plan to seed its spot Bitcoin ETF with $10 million. Additionally, Bitwise recently made 10 crypto predictions for 2024, including a forecast that Bitcoin will surpass a value of $80,000. The asset manager also believes that spot Bitcoin ETFs will gain approval and will be highly successful, capturing 1% of the $7.2 trillion US ETF market, amounting to $72 billion in assets under management.
Hot Take: Bitwise Steps Ahead with $200 Million Spot Bitcoin ETF Plan
Bitwise has revealed an ambitious plan to seed its spot Bitcoin ETF with $200 million, surpassing Blackrock’s commitment. This significant monetary injection will likely give Bitwise an advantage in the race to launch a successful spot Bitcoin ETF. If approved, this ETF could become the most successful ETF launch ever. Meanwhile, Blackrock has also announced its own plan to seed a spot Bitcoin ETF but with a much smaller amount of $10 million. These developments indicate the growing interest from institutional investors in the cryptocurrency market. As the competition heats up, it will be interesting to see which ETF gains regulatory approval and attracts more investment.
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