A Bloomberg analyst said BlackRock’s spot Bitcoin (BTC) states that he “seeded” an exchange-traded fund (ETF).
BlackRock announced the seeding with its latest amendment to its spot BTC ETF filing with the U.S. Securities and Exchange Commission (SEC), Bloomberg senior ETF analyst Eric Balchunas said. states.
BlackRock stating in their recent spot Bitcoin ETF amendment that they are seeding the ETF in October. Don’t want to read that much into it but it is new info not in original filing so noteworthy (esp bc they BlackRock). Great catch by Scott. https://t.co/CGBmuTJ7W0
— Eric Balchunas (@EricBalchunas) October 23, 2023
NEWS CONTINUES BELOW
Their application, called iShares Bitcoin Trust, has not yet been approved.
Balchunas explains:
“Seeding an ETF is the provision of initial financing (typically) by a bank or broker-dealer used to purchase a few creation units (in this case Bitcoin) in exchange for shares of the ETF that can be traded on the open market on the first day.
The seeding is usually not a lot of money, just enough to start the ETF. So I wouldn’t read this as ‘Blackrock is buying a ton of Bitcoin’, rather the fact that they are doing this and announcing it represents another step in the launch process.”
The analyst notes that insemination is usually ETFIt states that the ‘s took place “while we were preparing for launch.”
Balchunas also points out that iShares Bitcoin Trust is listed on the Depository Trust & Clearing Corporation (DTCC), which clears transactions for Nasdaq. The code of the ETF will be IBTC.
Koinfinans.com As we reported, BTC is trading at $33,952 at the time of writing.