An Investor Puts $100,000 into BlackRock’s Bitcoin ETF
An unidentified investor has made a significant investment in BlackRock’s spot Bitcoin ETF, providing $100,000 in seed capital. This investment took place on October 27 and resulted in the acquisition of 4,000 shares. Seed capital is the initial funding needed to support the creation units that underpin an ETF.
BlackRock revealed that it offered each seed share at $25 in an amendment to its S-1 filing with the SEC on December 4. Bitwise also updated its prospectus for a spot Bitcoin ETF but did not mention seed shares, implying that BlackRock is currently the only issuer to receive seed funding.
BlackRock’s Journey with the SEC
BlackRock filed for its iShares Bitcoin Trust (IBTC) in June 2023, attracting attention from both crypto and mainstream media due to the historically challenging nature of gaining SEC approval for such products. However, BlackRock’s positive track record with the SEC has raised hopes for approval this time around.
Following BlackRock’s filing, numerous other issuers, including Invesco, WisdomTree, Franklin Templeton, Valkyrie, and most recently Pando, have submitted applications for spot Bitcoin ETFs. Experts anticipate a decision on these filings by January 2024.
The Demand for Ethereum ETFs
The growing interest in spot Bitcoin ETFs has also sparked interest in similar products for Ethereum, the second-largest cryptocurrency by market capitalization.
Hot Take: Momentum Builds for Spot Bitcoin ETFs
The recent investment of $100,000 in BlackRock’s spot Bitcoin ETF demonstrates growing confidence and excitement surrounding these investment vehicles. As more issuers join the race and file applications with the SEC, the prospect of approval for a spot Bitcoin ETF becomes increasingly likely. This positive momentum is not only beneficial for BlackRock but also for the broader cryptocurrency market, as it paves the way for increased institutional participation and adoption. Investors eagerly await the SEC’s decision, which is expected in early 2024.
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