Blackrock Prepares for Bitcoin ETF Trading
As the approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) seems imminent, investment management firm Blackrock is actively preparing for ETF trading. Recent reports indicate that Blackrock has been one of the most proactive applicants, meeting the SEC’s requirements and engaging in discussions regarding potential approval.
Blackrock Secures $2 Billion Worth of BTC
According to Matthew Sigel, Head of Digital Assets Research at Van Eck, Blackrock has secured $2 billion of capital from existing Bitcoin holders who are interested in rotating into the spot Bitcoin ETF. This serves as a temporary measure to kickstart trading during the initial sessions, with a long-term strategy to acquire BTC based on demand for the iShares spot Bitcoin ETF.
Anticipated Approval and Launch Dates
The spot Bitcoin ETF is widely expected to be approved around January 9 or 10, 2024. Bloomberg analysts have also revealed that SEC officials are preparing for a Bitcoin ETF launch on January 11, 2024. The SEC has until January 10, 2024, to make a decision on the Ark 21Shares Bitcoin ETF.
Paperwork Nearing Completion
BlackRock’s iShares, along with other firms such as Valkyrie Bitcoin Fund and Bitwise, have submitted amendments for their ETF applications. These submissions represent the final stages of paperwork before the SEC grants approval for the first-ever spot Bitcoin ETF in the United States.
Hot Take: Blackrock’s Preparations Signal Confidence in Bitcoin ETF
Blackrock’s active preparations and securing of $2 billion worth of BTC demonstrate their confidence in the potential success of a spot Bitcoin ETF. By engaging in discussions and meeting the SEC’s requirements, Blackrock is positioning itself as a frontrunner in the emerging ETF market. If approved, the spot Bitcoin ETF could be a significant milestone for the cryptocurrency industry, opening doors to wider adoption and institutional investment.
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