On January 5, the biggest asset manager in the world, BlackRock, will buy a lot of Bitcoin. This follows Bloomberg analyst James Seyffart’s suggestion that the SEC must approve the long-pending Spot Bitcoin ETFs.
On January 5th, BlackRock will buy $10 million worth of Bitcoin to help seed its Spot Bitcoin ETF. The asset manager had originally scheduled this Bitcoin purchase for January 3. But it was ultimately pushed out to this later date, maybe so they could make sure they were totally compliant and had all the necessary governmental permissions.
In its most recent S-1 filing revision, BlackRock explained how the $10 million had come to be. That amount was the result of selling “Seed Creation Baskets,” according to the biggest asset management company in the world. When the company first seeded an exchange-traded fund (ETF) in October, the Seed Capital Investor bought 100,000 shares.
James Seyffart, an analyst at Bloomberg, has previously cautioned that Blackrock is not launching its ETF just yet simply because they want to seed it with this amount. He did mention the potential that asset management was preparing for a launch that was about to happen.
It should be noted that BlackRock’s original seed fund may not be the most prominent one in the end. In a recent update to their Spot Bitcoin ETF, fellow issuer Bitwise discussed the possibility of seeding their fund with $200 million, should they finally get permission from the SEC.
James Seyffart, a Bloomberg analyst, recently discussed the impending arrival of an approval order from the SEC. Cointelegraph reports that Seyffart said the Commission is already in a corner and cannot hope to convince issuers to withdraw their applications.
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