With the potential approval of the Spot Bitcoin ETF drawing near, asset management firm BlackRock is preparing for its launch by establishing a seed fund. BlackRock has already initiated plans for a $10 million seed funding to support the development and launch of its Spot Bitcoin ETF.
BlackRock Prepares Seed Fund For Bitcoin ETF
In a recent X (formerly Twitter) post, Bloomberg analyst James Seyffart revealed that BlackRock has officially committed to injecting $10 million in seed funding for its Spot Bitcoin ETF. The purpose of this funding is to drive the development and launch of its spot Bitcoin ETF.
UPDATE: @BlackRock has already submitted an updated/amended S-1 for their #bitcoin ETF. pic.twitter.com/sVAL9qVmiy
— James Seyffart (@JSeyff) December 22, 2023
Seyffart additionally revealed that the firm has 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 signifies the firm’s strong commitment to leading the development of the Spot Bitcoin ETF landscape. The company initially submitted its application in June, which was later delayed by the SEC.
The SEC has faced delays in approving multiple Bitcoin ETF applications, including those of Grayscale and WisdomTree. The scheduled date for the potential approval of the Bitcoin ETF applications is January 10th, 2024.
Alongside BlackRock, approximately 13 Spot Bitcoin ETF applications have been delayed by the SEC. Despite the delays and regulatory uncertainties surrounding Bitcoin ETFs, many enthusiasts, including Seyffart and Bloomberg Analyst Eric Balchunas, are highly optimistic about the SEC’s approval of Spot Bitcoin ETFs. These analysts have predicted a 90% chance of Bitcoin ETFs being approved by January 2024.
Seed Movements Do Not Certify Bitcoin ETF Launch
While BlackRock’s seed fund plans are welcomed by the crypto community, they do not officially guarantee the approval of the company’s Spot Bitcoin ETFs.
Seyffart also stated that BlackRock’s seed fund plan does not indicate a potential launch of the company’s Spot Bitcoin ETF.
Before this — SEED MOVEMENTS DO NOT MEAN LAUNCH
Looks like BlackRock is *planning* to make moves on Jan 3rd. They’re seeding the ETF with $10 million. But it may suggest that BlackRock is anticipating a launch shortly after? pic.twitter.com/PknXs5B2TP
— James Seyffart (@JSeyff) December 22, 2023
As per the information shared by the Bloomberg analyst, the funds from the seed creation basket are scheduled for January 3, 2024, but plans are subject to change.
“Seed movements do not mean launch. It looks like BlackRock is *planning* to take action on Jan 3rd. They’re seeding the ETF with $10 million. But this could imply that BlackRock expects a launch shortly after,” Seyffart commented.
Image Source: BlackRock @ Instagram
