BlackRock Plans $10 Million Seed Fund for Bitcoin ETF
As the approval date for the Spot Bitcoin ETF approaches, BlackRock, an asset management company, is making preparations for the potential launch of its own Spot Bitcoin ETF. Recently, BlackRock announced its plans to inject $10 million in seed funding to support the development and launch of the ETF.
BlackRock Submits Updated S-1 for ETF Application
In addition to the seed funding announcement, it has been revealed that BlackRock has submitted an updated and amended S-1 for their ETF application to the United States Securities and Exchange Commission (SEC). Other companies like Hashdex and Pando Asset have also submitted their respective filings.
SEC Delays Multiple Bitcoin ETF Applications
The SEC has delayed several Bitcoin ETF applications, including those from Grayscale and WisdomTree. The final decision on the potential approval of these applications is set for January 10th, 2024. Despite the delays and uncertainties, Bloomberg analysts James Seyffart and Eric Balchunas are optimistic about a 90% chance of approval by January 2024.
Seed Fund Does Not Guarantee ETF Launch
While BlackRock’s seed fund plans are positive news for the crypto community, they do not guarantee the launch of the company’s Spot Bitcoin ETFs. Seyffart clarified that the seed fund does not signify an imminent launch but suggests that BlackRock may be expecting one shortly after.
According to Seyffart, the proceeds from the seed creation basket are scheduled for January 3, 2024, although this timeline is subject to change at any time.
Hot Take: BlackRock Prepares for Bitcoin ETF Launch with $10 Million Seed Fund
BlackRock’s announcement of a $10 million seed fund for its Spot Bitcoin ETF demonstrates the company’s strong commitment to the cryptocurrency landscape. While the fund does not guarantee the ETF’s launch, it signals BlackRock’s preparation and anticipation for potential approval. With the final decision scheduled for January 10th, 2024, the crypto community eagerly awaits the SEC’s verdict on multiple delayed Bitcoin ETF applications. Despite regulatory uncertainties, analysts remain optimistic about a 90% chance of approval by January 2024.
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