As the Spot Bitcoin ETF approval date draws closer, asset management companies like BlackRock are getting ready for the potential launch of its Spot Bitcoin ETF. BlackRock has already initiated plans for its seed fund to support the launch of its Spot Bitcoin ETF.
BlackRock Prepares Seed Fund For Bitcoin ETF
In a recent X (formerly Twitter) post, Bloomberg analyst, James Seyffart announced that BlackRock has officially made plans to inject $10 million seed funding for its Spot Bitcoin ETF. The seed funds are aimed at propelling the development and launch of its spot Bitcoin ETF.
Seyffart also disclosed that the asset management company submitted an updated and amended S-1 for their ETF application to the United States Securities and Exchange Commission (SEC). In Addition to BlackRock, Hashdex and Pando Asset have also submitted their respective filings.
BlackRock's $10 million seed fund indicates the company's strong commitment to spearheading the Spot Bitcoin ETF landscape. The asset management company initially submitted its Spot Bitcoin ETF application to the SEC in June. However, the application was delayed by the SEC.
Bitcoin slides back into the $43,696 territory. Chart: TradingView.com
The regulatory agency has also delayed multiple other Bitcoin ETF applications including Grayscale, WisdomTree, and more. The final date of the potential approval of the Bitcoin ETF applications is scheduled for January 10th, 2024.
Including BlackRock, approximately 13 Spot Bitcoin ETF applications have been delayed by the SEC. Despite the delays and regulatory uncertainties surrounding Bitcoin ETFs, many crypto enthusiasts including Seyffart and Bloomberg Analyst, Eric Balchunas are highly optimistic about the SEC's approval of Spot Bitcoin ETFs. The two Bloomberg analysts have predicted a 90% chance of Bitcoin ETFs becoming approved by January 2024.
Seed Movements Do Not Certify Bitcoin ETF Launch
Although BlackRock's seed fund plans come as pleasant news to the crypto community, it does not officially certify the approval of the company's Spot Bitcoin ETFs.
Seyffart has also announced that BlackRock's seed fund plan does not signify a potential launch of the asset management company's Spot Bitcoin ETF.
According to information posted by the Bloomberg analyst, the proceeds of the seed creation basket are scheduled for January 3, 2024. However, the plans are subject to change at any time.
"Seed movements do not mean launch. Looking like BlackRock is *planning* to make moves on Jan 3rd. They're seeding the ETF with $10 million. But maybe it means that BlackRock would be expecting a launch to happen shortly after?" Seyffart stated.
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