BlackRock Plans $10M Bitcoin Purchase in Optimistic Bid for U.S Spot ETF Launch
Summary:
BlackRock, the world's largest asset manager, plans to buy Bitcoin worth around $10 million on 3rd January 2024, aligning with the company's intentions to launch the first U.S Bitcoin spot ETF, as per expert analysis. The investment is said to be standard but subject to change. BlackRock's amplification of funds from an October initial seed fund of $100,000 indicates serious investment prospects. Contrasting reports, however, suggest a possible shift in the purchase date to 5th January. Additionally, Bitwise's Bitcoin spot ETF is believed to get a hefty seed of $200 million, surpassing BlackRock's proposition.
BlackRock, globally acknowledged as the biggest asset manager, likely to acquire Bitcoin (BTC) estimated around $10 million on 3rd January 2024, as per market observers. The company's ambitions of initiating the first U.S Bitcoin spot ETF are believed to be signaled by this move. Market researcher James Seyffart shared this insight on X (formerly Twitter), mentioning BlackRock's intent to source its ETF with the planned Bitcoin purchase. However, Seyffart clarified that such a capital influx does not directly translate into an ETF launch, though BlackRock might consider a roll-out following this. Seyffart equated the 3rd January mark with Bitcoin's genesis block and labeled it as 'teasing'.
Revelations about the forthcoming Bitcoin acquisition aren't necessarily final or approved, but according to Seyffart, they align with expectations of January approval. He responded to an inquiring X user about the $10 million sum, mentioning that it is pretty standard but can be subjected to amendments.
Eric Balchunas, an analyst from Bloomberg, hinted towards the anticipated 3rd January procurement, stating that the estimated $10 million bump from October's initial $100,000 seed fund signals BlackRock's seriousness.
Additionally, Balchunas shared news about Bitwise’s Bitcoin spot ETF expecting to receive a $200 million seed, significantly overshadowing BlackRock's proposed investment.
As per numerous varying reports, BlackRock’s Bitcoin seed funding purchase might get shifted to 5th January from the predicted 3rd January date. Both potential dates remain speculative.
Further details from BlackRock concerning this development are still awaited. The U.S Securities and Exchange Commission (SEC) had given a deadline of 29th December 2023 to amend Bitcoin spot ETF applications. Last-minute amendments were filed by BlackRock, Van Eck, and Valkyrie in response. The SEC's ETF decision is forecasted to be announced by 10th January 2024 by market analysts.
Published At
1/3/2024 5:03:48 PM
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