BlackRock appears to be preparing for the launch of Bitcoin ETF in October

BlackRock, the world’s largest asset manager, appears to be preparing to launch its highly anticipated Bitcoin ETF later in October, with documents showing that the company has set the current month to kick off the launch of its Bitcoin exchange-traded fund, iShares Bitcoin. .

The information was revealed on the afternoon of this Monday (23). Scott JohnsonUS investigative attorney, and commented by Eric BalchunasBloomberg analyst, who shared insights into the ETF spread concept and how it generally signals the launch of an ETF.

The analyst revealed a BlackRock document detailing the financial giant’s intention to begin seeding the Bitcoin ETF later this month. The company’s statement shows a proactive move and may indicate optimism about the future of the financial product.

“BlackRock states in their recent Bitcoin ETF amendment that they will list the ETF in October. I don’t want to read too much into this, but it’s new information that wasn’t in the original order, so worth mentioning (especially since they’re BlackRock). – Said Eric Balchunas.

BlackRock states in their recent Bitcoin ETF amendment that they will release the ETF in October. I don’t want to read much into it, but it’s new information not in the original filing, so it’s notable (particularly for BlackRock). Great catch from Scott. https://t.co/CGBmuTJ7W0

— Eric Balchunas (@EricBalchunas) October 23, 2023

BlackRock may launch Bitcoin ETF in October

Balchunas explains that listing an ETF is a preliminary step in launching an exchange-traded fund. This involves a bank or broker that provides the starting capital, which is used to purchase the creation units – in this case bitcoins.

In exchange for this financing, the bank or broker receives shares of the ETF, which are ready to be publicly traded on the first day of the fund’s launch.

However, according to the analyst, it is important to emphasize that seeding, which is part of the distribution, does not necessarily amount to a massive acquisition of the underlying asset.

In other words, BlackRock’s move to seed the ETF should not be interpreted as a company buying large amounts of Bitcoin. Instead, it is sown with enough capital to start ETF activities.

When asked if it was normal for an ETF to be placed, Eric said yes, but that such a move only happens when the exchange-traded fund is about to launch.

— Shouldn’t all ETFs be placed? — asked one user.

— Yes, totally normal, but that’s the point: it happens when ETFs are getting ready to launch 🙂 – Replied the Bloomberg analyst.

yes completely normal, but that’s kind of the point: it happens when ETFs prepare for launch 🙂

— Eric Balchunas (@EricBalchunas) October 23, 2023

ETF receives $IBTC ticker

Another fact that attracted attention is that the BlackRock iShares Bitcoin Trust ETF is now listed with the ticker at the Depository Trust & Clearing Corporation (DTCC). $IBTC.

The listing is a significant milestone, according to analysts, as it means the ETF has achieved recognition as a legitimate financial instrument, having passed the stringent processes and controls required for its launch.

NEW – iShares from BlackRock #Bitcoin Trust is now listed with the ticker at the Depository Trust & Clearing Corporation $IBTC pic.twitter.com/kV8zxzJrEv

— Bitcoin Magazine (@BitcoinMagazine) October 23, 2023

Joining the roster of DTCC, the premier clearing and settlement infrastructure in the US, will allow the fund to more easily trade between brokers and other financial institutions, increasing liquidity and accessibility to the market.

Additionally, it indicates that the ETF meets security and custody standards, giving investors an extra level of confidence.

As speculation grows around the ETF’s approval, investors are expressing confidence that the SEC’s decision is imminent, possibly happening in late 2023.

Meanwhile, Bitcoin is trading sharply higher this Monday, crossing the $31,000 mark.