BlackRock to Inject $10 Million Into Seed Fund for Upcoming Spot Bitcoin ETF
BlackRock plans to invest $10 million into a seed fund for its proposed spot Bitcoin exchange-traded fund (ETF). This financial commitment is part of the firm’s preparations for the ETF’s anticipated launch, pending regulatory approval from the Securities and Exchange Commission (SEC).
According to Bloomberg Intelligence ETF analyst James Seyffart, the world’s largest asset manager BlackRock has submitted an updated S-1 filing with the SEC for their Bitcoin ETF. The amended filing included details regarding BlackRock’s movement prior to the Bitcoin ETF’s pending approval, aiming to inject $10 million into a seed fund.
“On January 3, 2024, the Seed Shares were redeemed for cash and the Seed Capitol Investor purchased the Seed Creation Baskets, comprising of 400,000 Shares at a pre-share price of $25.00,” detailed the filing.
“Total proceeds to the Trust from the sale of the Seed Creation Baskets were $10,000,000,” wrote the filing. “The Trust purchased [ ] bitcoin at the price of $[ ] per bitcoin with the proceeds of the Seed Creation Basket on January 3, 2024.”
Before this — 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 means BlackRock would be expecting a launch to happen shortly after? pic.twitter.com/PknXs5B2TP
— James Seyffart (@JSeyff) December 22, 2023
Though the seed movements “do not mean launch,” according to Seyffart, BlackRock’s seed round plan for the Bitcoin ETF would still “obviously jive with our Jan. approval prediction.”
It was also emphasized that even not yet named, the Authorized Participants will not be handling Bitcoin directly but only cash.
“The Authorized Participants will deliver only cash to create
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