BlackRock Postpones $10M Bitcoin Purchase: Unveiling the Reasons

• Bitcoin Surpasses $45k Mark, Highest in Nearly Two Years
• BlackRock Plans to Buy Bitcoin Postponed
• Why BlackRock Postponed its Bitcoin Purchase
• SEC's Decision on Spot Bitcoin ETF
• Possible Delays and Legal Battles

Bitcoin Surpasses $45k Mark, Highest in Nearly Two Years

Bitcoin$42,260 -0.64% (BTC), the most prominent cryptocurrency by market cap, commenced the year 2024 on an optimistic note, exceeding the $45k level for the first time since March 2022. A potential spot BTC ETF (Exchange Traded Fund) endorsement by the US SEC (Securities and Exchange Commission) has created a buzz among crypto enthusiasts.

BlackRock Plans to Buy Bitcoin Postponed

BlackRock, a contender for the spot BTC ETF, had initially planned a $10 million Bitcoin purchase on January 3, 2024. However, reports indicate that the world's largest asset manager has delayed this purchase. The bought Bitcoin would have been utilized for the seed creation basket, but for undisclosed reasons, the purchase has been delayed.

Why BlackRock Postponed its Bitcoin Purchase

The exact reason for BlackRock's postponement remains unclear. It is speculated that the asset manager might be coordinating its actions with its spot BTC ETF. Furthermore, the SEC could potentially delay its decision on the ETF. Consequently, the asset manager may have opted to delay its Bitcoin acquisition. Reports suggest BlackRock has pushed its Bitcoin purchase to January 5, 2024.

SEC's Decision on Spot Bitcoin ETF

Several market analysts anticipate that the SEC will approve one or more spot BTC ETF applications by January 10, 2024. An early January decision seems feasible according to some experts.

Possible Delays and Legal Battles

However, the financial regulator may postpone its decision due to technical issues. Notably, the SEC is also embroiled in legal disputes with major crypto companies like Coinbase. In the previous year, the SEC partially failed in its case against Ripple, which was accused of illicitly selling unregistered securities. Nevertheless, a district court ruled that selling XRP$0.620 -1.68% to retail customers was not a breach of securities laws. The SEC postponed every deadline for a spot BTC ETF in 2023, leaving room for speculation on whether the same will happen in 2024.

Edited by Jonathan Stoker