BlackRock Reveals Plans To Seed Spot Bitcoin ETF In October, What This Means
In the latest amendment to its iShares Bitcoin Trust prospectus, the world’s largest asset manager, BlackRock, revealed that it planned to start seeding starting this month. This has further raised speculations as to the possibility of a Spot Bitcoin ETF launching soon.
How Seeding Suggests An Approval Is Imminent
In a post shared on his X (formerly Twitter) platform, Bloomberg analyst Eric Balchunas mentioned that BlackRock’s amendment about seeding is noteworthy because it wasn’t in the original filing. However, he doesn’t want to read so much meaning into it.
As to what seeding means and how it is a positive sign for the crypto community, Balchunas explained that seeding an ETF is when “initial funding” is provided to purchase a “few creation units,” which in this case would mean Bitcoin in exchange for ETF shares “which can be traded in [the] open market on Day One.”
He further noted that seeding is “typically not a lot of money” but just enough to kickstart the ETF. As such, one cannot assume that BlackRock is purchasing a lot of Bitcoin just yet. However, the fact that the seeding is starting already and they are disclosing it is another step “in the process of launching.”
Balchunas and fellow Bloomberg Analyst James Seyffart had previously noted the notable changes that were made to the ARK 21Shares Spot Bitcoin ETF prospectus and predicted that the US Securities and Exchange Commission (SEC) could approve a fund as early as next year.
Their stance hasn’t changed, as Seyffart noted in a recent X post, as they still believe there is a likelihood that a Spot Bitcoin ETF will be approved by January 10, 2024. Coincidentally (or maybe not), that happens to be the last deadline for the SEC to either approve or disapprove the ARK 21Shares Spot Bitcoin ETF.
BTC sees sustained recovery | Source: BTCUSD on Tradingview.com
More Positive Signs Of An Impending Spot Bitcoin ETF
In a subsequent post on his X platform, Balchunas also noted that BlackRock’s iShares Bitcoin Trust has been listed on the Deposit Trust & Clearing Corporation (DTCC), which is responsible for clearing NASDAQ trades.
Up until now, BlackRock’s ticker was also unknown as it wasn’t contained in its prospectus, but it is now confirmed that the fund will be traded under the ‘$IBTC’ ticker symbol. The Bloomberg analyst noted that all this forms “part of the process” of launching an ETF.
It is believed that all these developments form part of the bullish sentiments that have seen Bitcoin rise to as high as $35,000. As of the time of writing, Bitcoin is trading at around $34,500, up by over 11% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Coingape, chart from Tradingview.com
