BlackRock seeded its Bitcoin ETF with $100K in October, new SEC filing shows

Share this article

BlackRock, the world’s largest asset manager, has filed an updated application with the Securities and Exchange Commission (SEC) to launch a spot Bitcoin exchange-traded fund (ETF), according to a filing published today. The filing shows that BlackRock seeded the proposed ETF with a $100,000 investment on October 27, according to Bloomberg ETF Analyst, Eric Balchunas.

Looks like they did seed the ETF back in October like we thought, altho small amount $100k. pic.twitter.com/RdkM0BPTYA

— Eric Balchunas (@EricBalchunas) December 5, 2023

Seeding an ETF is a foundational step in its creation. When an ETF is seeded, the fund’s sponsor or institutional investors often provide an initial injection of capital. This initial funding is crucial as it allows the ETF to purchase Bitcoin

The proposed “iShares Bitcoin Trust” aims to track the price of Bitcoin, giving investors exposure to BTC through a traditional investment vehicle.

BlackRock’s Bitcoin ETF is now one of 13 potential contenders hoping to be approved by the SEC. The full list includes proposals from major players like Ark Invest, Bitwise, VanEck, and Fidelity.

However, the SEC has rejected multiple Bitcoin spot ETF applications over the years despite a growing list of applicants. The regulatory agency has expressed concerns about potential manipulation and illicit activities in the Bitcoin market.

Bloomberg ETF analysts James Seyffart and Balchunas previously put the odds of a spot Bitcoin ETF approval at 90% for January 2024.

Last week, Seyffart further pinpointed the critical window from January 5th-10th when any potential Bitcoin ETF approval orders from the SEC are expected to come. He said any decisions would likely come on January 8th, 9th or 10th.

Window is officially Jan 5th to Jan 10th. Really this means that any potential approval orders are going to come on either Monday Jan 8, Tuesday Jan 9, or Wednesday Jan 10. Mark your calendars people. https://t.co/8ob8Y6pgU5

— James Seyffart (@JSeyff) December 1, 2023

Bitcoin is trading below $42,000, up 12.3% over the past seven days, according to CoinGecko.

Share this article