April 14, 2024

The race for the launch of the first spot Bitcoin exchange-traded fund (ETF) in the United States is still on. The US Securities and Exchange Commission (SEC) revealed the seed funding of some financial giants through its recent filing. 

The filing showed that an anonymous investor released $100,000 to the world’s biggest asset manager, BlackRock. Notably, cash is part of the company’s seed funding for spot Bitcoin ETF.

BlackRock Gets $100,000 In Seed Funding for Spot BTC ETF

On December 4, the SEC released its latest filing on the applications for spot Bitcoin ETFs awaiting its approval. The filing disclosed an investor offering $100,000 to BlackRock on October 27, 2023, in line with the firm’s seed funding.

The investor consented to buying 4,000 BTC ETF shares from the asset manager at $25 per share. 

The filing stated that “the seed capital investor agreed to purchase $100,000 shares on October 27, 2023, and on October 27, 2023, took delivery of 4,000 shares at a per-share price of $25.00 (the ‘seed shares’).”

Based on the funds, the investor is now

acting as a statutory underwriter with respect to the Seed Creator Baskets.

Seed capital is a type of funds gathered as financial support for a project. The money serves as the first funding that will propel the creation of the units underlying the BTC ETF product. Also, it will facilitate the provision and trading of the shares in an open market.  

Further, the latest BlackRock filing indicated the company’s decision to cover the sponsor’s fee. This applies to situations where the firm may borrow cash or Bitcoin as trade credits for a short tenure from the trade credit lender.

A prominent ETF analyst, Eric Balcchunas, posted a section of the Trade Credit Lender on the X platform. Additionally, the filing noted that BlackRock can take fees from an investor through a loan. So, it won’t have to sell off any BTC ETF asset. This ensures that the company doesn’t have much influence on the price of Bitcoin.

Piles of Spot Bitcoin ETF Applications Await The SEC’s Approval

The US Securities and Exchange Commission (SEC) is yet to approve a spot Bitcoin ETF. It has failed to meet deadlines for approving filings on spot BTC ETF throughout 2023.

Already, the SEC has up to 13 applications for spot BTC ETF from huge institutional companies.

BlackRock submitted its application to the securities regulator way back in July 2023. Many people are quite optimistic about seeing the regulator’s approval in January 2024. Some analysts at Bloomberg predicted a 90% possibility of the SEC approving at least one spot BTC ETF early next year.

Additionally, the founder of SkyBridge Capital, Anthony Scaramucci, is positive about the regulator’s approval of a spot Bitcoin ETF in January 2024. During an interview on The Scoop last Thursday, he noted that spot BTC ETFs will release a huge sales force comprising tens of thousands of investors.

Based on dates, some of the ETF applications on the SEC’s desk are gradually approaching their deadline by the beginning of January next year. However, the SEC could defy its approval based on technical reasons.


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