- BlackRock, according to a new prospectus, seems to be seeding the spot Bitcoin ETF with $10 million.
- The expected seeding set for January 3 is 100 times larger than the October seeding of $100,000.
- BlackRock submitted an updated filing on December 22 following the SEC's meeting with all spot ETF applicants.
Spot Bitcoin ETF approval hype is increasing by the day with the marketing war already underway, but BlackRock is taking a different route. Over the past few days, one of the first applicants has been focusing on ensuring a smooth and large launch of its ETF over putting out advertisements, the hints of which can be seen in its most recent filing.
BlackRock makes a big move
BlackRock amended its spot Bitcoin ETF application per a new filing with the Securities and Exchange Commission (SEC). The move came after the regulatory body held a meeting with all the BTC ETF applicants as the expected approval date of January 10 comes closer.
While the likes of Bitwise and Hashdex have already begun attempting to appeal to consumers with the advertisements of their spot Bitcoin ETF products, BlackRock is moving forward with the seeding of IBIT (BlackRock's spot ETF ticker).
Per a new prospectus, the world's largest asset management company is expecting to seed its investment product with $10 million. This would mark a 100x jump from the initial $100,000 seeding from October. Furthermore, the $10 million seeding is set for January 3, 2024, which is a week before the expected approval.
BlackRock seeding prospectus
Seeding is the process in which the initial investment takes place that allows an ETF to launch and start trading. This seed capital is used to fund the creation of units that underlie the ETF in order to offer the shares to investors in the open market.
According to Bloomberg ETF analyst James Seyffart, it could likely mean that BlackRock is planning to launch its investment product shortly after the approval. He also tweeted the subject to change the prospectus, stating,
Putting this here so everyone understands that this is not a final or approved or 'effective' document because i can see the hype building a bit too much. haha pic.twitter.com/EuuMpTKUZf
— James Seyffart (@JSeyff) December 22, 2023
Read more - Bitcoin Price Annual Forecast: BTC readies for home run in 2024 with two bullish fundamentals on tap
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin rebounds as South Korea martial law proves short-lived
Bitcoin recovers slightly, trading above $96,000 on Wednesday, after its recent dip on Tuesday due to the political strife in South Korea. With the crisis seeming to be mostly over, BTC recovered more as the reversal of the martial law restored confidence in crypto markets.
Curve DAO price surges above $1, highest level since April 2023
Curve DAO extends gains by more than 30% on Wednesday, rallying 70% so far this week and reaching levels not seen since April 2023. On Tuesday, the announcement of CRV’s scrvUSD stablecoin launch on the Spectra ecosystem fueled the ongoing rally.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptomarket stabilizes after South Korea reverses martial law
Bitcoin hovers near $95,700 on Wednesday, signaling potential weakness as technical indicators suggest a decline, while Ethereum and Ripple stabilize near key levels, hinting at a possible rally following South Korea's reversal of martial law.
Ripple's XRP sees over $4 billion in profit-taking following surge in whale activity
Ripple's XRP is down 5% on Tuesday after news of South Korea declaring martial law sparked a surge in selling activity and significant profit-taking among investors. However, whales have stepped up buying pressure as the remittance-based token looks to stage a recovery.
Bitcoin: A healthy correction
Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.