BlackRock, the largest asset manager in the worldappears to be moving ahead with its plan to launch its Spot bitcoin ETF, subject to bitcoin-news/sec-prove-bitcoin-is-not-manipulated/” rel=”nofollow noopener” target=”_blank”>SEC approval. A recent development shows that the asset manager has already seeded this fund as part of its preparation.
BlackRock seeded its bitcoin ETF in October
BlackRock recently archived an amendment to its S-1 filing with the Securities and Exchange Commission (SEC). One of the highlights of this latest amendment was the fact that the asset manager raised the ETF in October. Eric Balchunas, Bloomberg analyst I also noticed this development in a recent X mail while stating how insignificant the $100,000 down payment was.
However, BlackRock's introduction of its ETF might not come as a surprise to some, as the asset manager had previously made known its intention to do so. Bitcoinist reported In October, the asset manager had revealed its intention to seed its btc ETF that month. In line with this, the ETF's initial investor purchased $100,000 worth of shares on October 27.
balchunas had previously provided an idea of what “sowing” is about. He explained that this was simply seed funding that would be used to purchase some creation units. Basically, the asset manager has created some shares for its Spot btc ETF, which can be traded from the first day of launch.
Balchunas also mentioned that planting does not usually involve a lot of money, which would explain why the planting amount is $100,000. Meanwhile, this doesn't necessarily mean BlackRock has started buying btc yet, especially considering the SEC is Still against the in-kind model..
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/12/BlackRock-Has-Actually-Seeded-Its-Bitcoin-Spot-ETF-What-This" alt="Tradingview.com bitcoin Price Chart (BlackRock Spot ETF)” width=”2650″ height=”1530″/>
btc holds $41,700 | Source: BTCUSD on Tradingview.com
All eyes on January
Bloomberg analyst James Seyffart recently declared that there is a possible approval window between January 5 and 10. At the moment, there seems to be a lot of optimism that the SEC would approve these bitcoin Spot ETFs simultaneously. Reacting to BlackRock's latest amendment, Seyffart mentioned that this means “the wheel is turning.”
The SEC has been meeting with various taxpayers to “fix things,” and Seyffart noted that these amendments are simply the product of conversations between both parties. It is worth mentioning that BlackRock is not the only asset manager to recently file an amended prospectus, as Bit by bit he did it too.
Balchun wait other taxpayers to make amendments to their prospectus this week in response to the SEC's comments. Meanwhile, both Seyffart and Balchunas bitcoin/bitcoin-37000-spot-etf/#:~:text=bitcoin%20has%20risen%20above%20%2436%2C000,get%20approved%20by%20January%202024.” rel=”nofollow noopener” target=”_blank”>had mentioned previously That approval doesn't exactly equate to funds being released instantly.
Apparently there are two paths that must be cleared before these bitcoin Spot ETF can throw. The first is the 19b-4 approval, which is expected to arrive in January. Once this is done, the SEC's Division of Corporate Finance will need to approve the S-1 filings.
Featured image from CoinMarketCap, chart from Tradingview.com
