BlackRock hopes to win the battle from ETF Bitcoin cash. A investor is also betting on his success by investing 100,000 dollars in seed capital, while theapproval is always uncertain.
The growing enthusiasm of institutional investors for a Cash ETF on Bitcoin continues to drive the value of BTCwhich broke the $40,000 barrier. The recent improvement in the macroeconomic environment is also benefiting the crypto asset.
For all that, uncertainty remains as to the SEC’s position on the ETF cases piling up on its desk. Regularly questioned on the subject, SEC Director Gary Gensler declines to comment.
100,000 in seed money on iShares Bitcoin Trust
Not enough to completely scald investors, however – all the more so as legal pressure on the stock market regulator is mounting, and Grayscale has already won a battle. A strong candidate for a spot ETF, BlackRock also records an entry on its pending fund.
In a communication to the stock exchange authority, the American asset management giant states that it has received $100,000 as “seed capital” for its proposed Bitcoin exchange-traded fund.
“The Seed Capital Investor agreed to purchase $100,000 of shares on October 27, 2023 and took delivery on October 27, 2023 of 4,000 shares at a price of $25.00 per share (the ‘Seed Shares’),” BlackRock details.
The first spot ETF sweeps the market?
How can a financial product that is still in the examination phase raise capital?
Seed capital represents the initial funding that enables an ETF to finance the creation of the units underlying the ETF, so that the shares can be offered and traded on the open market”, explain our colleagues at Coindesk.
In any case, this investment is likely to reflect a degree of confidence on the part of investors. For analysts at Bloombergit is only a matter of time before the SEC approves one or more ETFs.
They estimate the probability of a green light from the regulator in early 2024 at 90%. The first ETF will, however, enjoy a definite competitive advantage, as suggested by the market share accumulated in 2021 by ProShares’ first futures ETF.
In cash ETFs, BlackRock faces stiff competition. The firm’s iShares Bitcoin Trust is one of 13 applications awaiting regulatory approval by the SEC. But BlackRock has its strength and past successes to fall back on.
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