BlackRock Secures $100K Seed Funding For Proposed Spot Bitcoin ETF
By Benzinga
Investment giant BlackRock Inc. (NYSE:BLK) secured $100,000 as seed funding for its proposed Bitcoin (CRYPTO: BTC) exchange-traded fund (ETF), according to a recent Securities and Exchange Commission (SEC) filing.
What Happened: BlackRock revealed this investment was made in October. An investor, whose identity remains undisclosed, agreed to purchase $100,000 in shares, taking delivery of 4,000 shares at a per-share price of $25, CoinDesk reported.
The seed capital will be used for the creation of units underlying the ETF, enabling shares to be offered and traded in the open market.
See Also: ‘Dogecoin Killer’ Shiba Inu Burn Rate Skyrockets By 500% As Shibarium Logs Over 4M Transactions
BlackRock’s proposed “iShares Bitcoin Trust” will invest directly in Bitcoin, as opposed to futures tied to the cryptocurrency. It’s one of 13 similar applications currently awaiting regulatory approval.
The SEC is expected to approve one or more spot ETFs in early 2024, with Bloomberg analysts estimating a 90% probability for approval in January.
Why It Matters: There is a widespread expectation that the SEC will approve multiple spot bitcoin ETFs at the same time. Bloomberg ETF analyst Eric Balchunas has predicted a 90% chance of approval by Jan. 10, a forecast that has remained steady for several months.
Meanwhile, Bitcoin crossed the $40,000 level for the first time since late April 2022 on Sunday. The rise in Bitcoin prices comes amid a backdrop of a gradual rally, which has been fueled by expectations linked with the approval of a Bitcoin Spot ETF by the Securities and Exchange Commission.
Photo via Shutterstock
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