As the final deadline approaches for the U.S. Securities and Exchange Commission (SEC) to decide on the spot Bitcoin exchange-traded fund (ETF) application submitted by ARK Invest and 21 Shares, BlackRock is poised to take a significant step forward with its proposal. The asset management giant is set to seed the fund with $10 million worth of Bitcoin, underlining its commitment and preparedness to launch the highly anticipated crypto investment vehicle.
Last month, Bloomberg Intelligence ETF analyst James Seyffart shared that the New York-based asset management giant, BlackRock, had submitted an amended Si-1 form with the SEC.
While the amended S-1 filing, at the time, did not include the names of the authorized participants (AP), BlackRock, the world's largest asset manager with $9.42 trillion in assets as of June 30, 2023, highlighted its plan to seed its iShares Bitcoin Trust (IBIT) with $10 million in Bitcoin on Jan. 3, 2024.
Seyffart mentioned that while before all the amendments and meetings with SEC officials, seed movements do not necessarily mean a launch, this time it could indicate that the firm "would be expecting a launch to happen shortly after." This aligns with the analyst's prediction about the January approval.
UPDATE: @BlackRock already submitted an updated/amended S-1 for their #bitcoin ETF. pic.twitter.com/sVAL9qVmiy
— James Seyffart (@JSeyff) December 22, 2023
Fellow Bloomberg Intelligence ETF analyst Eric Balchunas also commented on BlackRock's plan to seed its iShares Bitcoin Trust on Jan. 3, highlighting the significance of the date and the substantial increase in the amount it intends to seed the fund. In October, the seeding amount was only $10,000.
BlackRock expecting to seed $IBIT w/ $10 million on Jan 3rd.. notable the date and that it is a pretty big bump up from the $100k they seeded in Oct. https://t.co/cV22QYz3Do
— Eric Balchunas (@EricBalchunas) December 22, 2023
Seed Capital Investor, an affiliate of BlackRock, purchased Seed Shares on October 27, acquiring 4,000 shares at a price of $25,000 per share, totaling $100,000.
As of now, BlackRock has not commented on the scheduled seeding of iShares Bitcoin Trust for this Wednesday. However, several reports claim that the seeding process has been delayed and rescheduled for Friday, January 5.
While there are reports suggesting that the SEC might announce its decision related to spot Bitcoin ETF applications, BlackRock amended its S-1 form once again last week, naming JP Morgan and Jane Street Capital as its authorized participants.
Balchunas observed this development and speculated that BlackRock could be the "first horse" at the "starting gate" of the Bitcoin exchange-traded fund (ETF) race, citing its compliance with the two essential requirements outlined by the SEC.
Bitcoin, the world's oldest and largest crypto asset by market capitalization, was trading in the red zone at $43,101.90 with a 24-hour trading volume up by 15.93% at $44.61 billion as of 12:34 p.m. ET on Wednesday.
The latest price action of Bitcoin represents a 4.94% dip in its value for the day and a 0.25% loss over the last seven days.
Data from CoinMarketCap shows that Bitcoin's current circulating supply stands at 19.59 million BTC, with its market cap at $841.43 billion.
