BlackRock, one of the largest asset managers in the world, invested $10 million in a spot Bitcoin ETF. This is an important step toward the possible approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC).
$10 million in seed capital
Spot Bitcoin ETFs track the price of Bitcoin itself, unlike futures ETFs, which track the price of Bitcoin in the future. Spot Bitcoin ETFs are seen by many crypto enthusiasts as an important step in the adoption of Bitcoin by traditional financial institutions.
Bloomberg analyst James Seyffart commented Divided that BlackRock has officially made plans to invest $10 million in seed capital into its spot Bitcoin ETF. The seed capital funds are intended to stimulate the development and introduction of the Bitcoin ETF.
Seyffart says the capital injections do not mean the ETF will actually be launched. He says: “It looks like BlackRock plan is scheduled to go live on January 3. They provide 10 million to the ETF. But perhaps this means BlackRock expects a launch soon after?”
January can’t come soon enough
BlackRock is not the only asset manager investing in a spot Bitcoin ETF. In total, more than 13 spot Bitcoin ETF applications have been filed with the SEC. The SEC has not yet made a decision on these requests, but the commission said it will consider them by January 10, 2024.
Seyffart and his Bloomberg colleague Eric Balchunas are very optimistic about the SEC’s approval. The two analysts predict a 90% chance that Bitcoin ETFs will be approved by January 2024.
If the SEC approves the applications, spot Bitcoin ETFs will be made available to a broad audience. This could increase Bitcoin’s popularity and stabilize the crypto market.
Source: BTC Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
