BlackRock Inches Towards Bitcoin ETF: Amendments Made

• BlackRock Submits Amendment for Spot Bitcoin ETF Application
• BlackRock's Cash-only Approach for ETF
• Initial Funding and Future Plans for the ETF
• Launch Date of BlackRock's Spot Bitcoin ETF
• Predictions for the Crypto Market

BlackRock Submits Amendment for Spot Bitcoin ETF Application

BlackRock, the world's largest asset manager, has recently made an amendment to its S1 filing with the US Securities and Exchange Commission (SEC) in relation to its Bitcoin$42,260 -0.64% (BTC) Exchange Traded Fund (ETF) application. The document reveals that BlackRock intends to adopt a cash-only approach for its proposed ETF.

BlackRock's Cash-only Approach for ETF

The asset manager plans to accept cash for the purpose of buying Bitcoin to facilitate the creation of new shares. There are primarily two ways to issue shares, namely cash creation and in-kind. The firm has chosen to go with the cash creation approach.

Initial Funding and Future Plans for the ETF

The firm has recently been the recipient of $100,000 in seed money from an investor, resulting in the delivery of 4000 shares. Bloomberg's senior ETF analyst, Eric Balchunas, commented on BlackRock's decision to go cash-only and suggested this could expedite the ETF's launch before the holiday season.

Launch Date of BlackRock's Spot Bitcoin ETF

The US SEC has delayed its 2023 deadlines for making a decision on spot Bitcoin ETFs. However, Bloomberg analysts predict that the SEC approval of one or more spot BTC ETFs could come as early as January 10, 2024. Crypto advocate Anthony Scaramucci shares this belief, suggesting that the SEC could approve multiple applications by early January 2024.

Predictions for the Crypto Market

An approval of a spot BTC ETF could potentially spark a rally in the crypto market similar or even greater than the one witnessed in 2021. Furthermore, the next Bitcoin halving cycle is set to take place in April of the following year, adding to the bullish sentiment for the cryptocurrency. Blockstream CEO Adam Beck, suspected to be Satoshi Nakamoto, believes that both these developments could push Bitcoin to reach the $100,000 mark.

Edited by Jonathan Stoker