In a recent application to the U.S. Securities and Exchange Commission (SEC), BlackRock (BLK), the investment behemoth, disclosed that it had received $100,000 as “seed capital” for its proposed bitcoin (BTC) exchange-traded fund.
According to the filing, “the seed capital investor agreed to purchase $100,000 in shares on October 27, 2023, and on October 27, 2023 took delivery of 4,000 shares at a price of $25.00 per share (the “seed shares”).”
The first money that enables an exchange-traded fund (ETF) to finance the development of the underlying units is known as seed capital. This enables the offering and trading of ETF shares on the open market. Amidst the 13 applications pending regulatory approval is BlackRock’s proposed “iShares Bitcoin Trust,” which would invest in bitcoin instead of futures linked to the top cryptocurrency.
Most analysts at Bloomberg believe that there is a 90% chance that the SEC will approve one or more spot ETFs in January of next year.