According to BlackRock’s recent filing, an unidentified investor committed to acquiring $100,000 worth of Spot BTC ETF (Spot Bitcoin Exchange Traded Fund) shares on October 27, 2023. The largest asset manager globally disclosed this seed fund investment in a filing with the US Securities and Exchange Commission (SEC). As per the document, the investor “took delivery of 4,000 shares at a per-share price of $25.00.”
Seed capital refers to the funds raised for the initial development of a product or project, and in this context, it pertains to creating the underlying units of the ETF.
BlackRock’s spot Bitcoin (BTC) ETF is distinct in that it will invest directly in the actual cryptocurrency rather than using futures investment vehicles linked to BTC. Notably, BlackRock’s application for a spot BTC ETF is among the 13 applications awaiting regulatory approval.
Also read: BTC price breaks $41K as Bitcoin trader eyes return to all-time high
When will the SEC approve a Spot BTC ETF?
As of 2023, the SEC has not met any of its deadlines for approving a spot Bitcoin (BTC) ETF. The next set of deadlines is expected in early 2024. Analysts at Bloomberg suggest a high likelihood, approximately 90%, that the SEC will approve one or more spot BTC ETF applications in January 2024.
Anthony Scaramucci, the founder of SkyBridge Capital, shares a similar anticipation, expecting the SEC to approve a spot BTC ETF by January 2024.
However, the SEC might potentially delay its decision for technical reasons. Earlier this year, the SEC faced setbacks in its legal battle with Ripple, asserting that the sale of XRP by the firm should be subject to securities laws. Nevertheless, a U.S. court ruled that selling XRP to retail investors did not violate securities laws. This defeat may have prompted the SEC to reconsider its stance on cryptocurrencies and could result in more time being taken for future applications.
Despite potential delays, the approval of a spot Bitcoin (BTC) ETF in the U.S. is eagerly awaited, and such approval from the SEC could potentially drive the original cryptocurrency to new heights. BTC recently surpassed the $41,000 mark, and many analysts anticipate a bullish market for the cryptocurrency sector in early 2024.