BlackRock Plans to Launch ETF Backed by 10 Million Dollars in Bitcoin

Crypto News- BlackRock, a globally renowned asset management giant and a front-runner in the race to introduce the inaugural spot Bitcoin ETF in the United States, appears set to secure $10 million worth of Bitcoin (BTC) by January 3, 2024, as indicated by industry experts.

BlackRock Plans to Launch ETF Backed by 10 Million Dollars in Bitcoin

On December 23, market research authority James Seyffart revealed on X, formerly Twitter, BlackRock’s intentions to kickstart its ETF by allocating $10 million into Bitcoin, with the prevailing BTC rate at $43,050. Seyffart clarified that the document outlining the BTC purchase is in a preliminary stage and awaits final approval, aligning with their earlier forecast for approval in January.

Seyffart emphasized that while the capital injection doesn’t guarantee an immediate ETF launch, it strongly suggests a potential release shortly thereafter. The selection of January 3 as a significant date is perceived as a strategic tease, drawing parallels to the genesis block of Bitcoin. Responding to queries about the $10 million seed size, Seyffart indicated that it is currently deemed “fairly standard” but remains subject to potential adjustments.

BlackRock Eyes 10 Million Dollars Bitcoin Purchase for Potential ETF Launch in Early 2024

In late December, Eric Balchunas, a respected Bloomberg analyst, also delved into BlackRock’s anticipated $10 million Bitcoin acquisition, underscoring the significant surge from its initial $100,000 seed funding in October. Balchunas also brought attention to Bitwise’s S-1 filing, outlining plans to seed its upcoming spot Bitcoin ETF with an impressive $200 million, surpassing BlackRock’s proposed investment.

While January 3 was initially speculated as the pivotal date for BlackRock’s BTC seed funding, alternative reports are circulating, suggesting a potential postponement to January 5. The exact date remains speculative at this juncture. Despite efforts to gather more insights from BlackRock, Cointelegraph’s inquiries have yet to receive a response.

The United States Securities and Exchange Commission (SEC) established a deadline for amendments to spot Bitcoin ETF applications on December 29, 2023. BlackRock, along with Van Eck and Valkyrie, submitted last-minute amendments. Analysts anticipate the SEC’s decision on the ETF to be disclosed by January 10, 2024.