Aaryamann Shrivastava
FXStreet
- 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
Could Worldcoin price shoot up 45% ahead of OpenAI’s live stream on Monday?
Worldcoin has formed a double bottom around a key support level, suggesting a potential accumulation. If the OpenAI’s Monday live stream has a positive impact on Artificial Intelligence field, it could positively impact WLD and other AI-based tokens.
Here’s what needs to happen for The Graph price to revisit $0.422
The Graph price trades inside the $0.192 to $0.494 range. Investors need to wait for GRT to overcome $0.343 before being bullish on GRT. If successful, GRT could rally 50% and revisit the $0.422 hurdle. A decisive daily candlestick close below $0.192 will invalidate the bullish thesis.
SingularityNET price could bounce 30% if AGIX can hold this level
SingularityNET price has been consolidating around the bottom of the $0.903 to $1.475 range for nearly a month. With some AI-tokens showing signs of revival, AGIX needs to be enalyzed for potential breakout opportunities like Arkham (ARKM).
Arkham price primed for a recovery rally ahead of OpenAI’s announcement
Arkham price eyes a potential reversal as it clears key hurdles. ARKM likely to rally 27% if it can overcome $2.74 resistance level. A breakdown of $2.28 wil invalidate the bullish thesis for the AI-based token.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped. Markets have noted significant trading differences between sessions, and while the Asian market showed strength, whatever ground they were able to cover was oftentimes wiped out by traders in the US.