BlackRock Secures $100K Seed Funding for Bitcoin Spot ETF

• BlackRock Discloses $100,000 Seed Capital Receipt for Proposed Bitcoin ETF
• Understanding the Seed Capital Investment
• Details on BlackRock's Proposed Bitcoin ETF
• Expectations from the SEC

BlackRock Discloses $100,000 Seed Capital Receipt for Proposed Bitcoin ETF

BlackRock (BLK) has made public that it has garnered $100,000 as seed capital for its proposed Bitcoin$42,260 -0.64% (BTC) exchange-traded fund (ETF), according to a recent submission to the U.S. Securities and Exchange Commission (SEC).

Understanding the Seed Capital Investment

The investor of the seed capital pledged to buy $100,000 in shares on October 27, 2023. They took delivery of 4,000 shares on the same date, with each share priced at $25.00, as per the details of the filing. Seed capital serves as the primary funding that empowers an ETF to finance the generation units lying beneath the ETF, allowing shares to be offered and traded on the open market.

Details on BlackRock's Proposed Bitcoin ETF

BlackRock is proposing an iShares Bitcoin Trust, which plans to invest directly in Bitcoin as opposed to futures linked to the premier cryptocurrency. This application is one of the 13 that are currently awaiting regulatory sanction.

Expectations from the SEC

The SEC is anticipated to approve one or more spot ETFs in early 2023. Analysts from Bloomberg estimate a 90% chance of approval occurring in January.

Edited by Jonathan Stoker