BlackRock Could Seed $1B BTC Hours after ETF Launch: Expert

In a recent development, Bloomberg ETF analyst James Seyffart has shed light on the potential involvement of BlackRock, a prominent asset manager, in Bitcoin accumulation ahead of the upcoming Bitcoin spot ETF approval. Seyffart clarified the assumptions surrounding BlackRock’s $10 million seeding in the Bitcoin ETF, arguing that the firm follows a pattern in its ETF endeavors, typically seeding $5 million to $10 million initially. This is then followed by hundreds of millions or even a billion dollars, usually a few hours after the launch of the ETF.

BlackRock’s ETF Seeding Strategy

Drawing parallels with BlackRock’s past practices, Seyffart highlighted that the firm typically seeds within an initial range of $5 million to $10 million. This is then followed by hundreds of millions or even a billion dollars, usually a few hours after the launch of the ETF. This pattern has stirred varied sentiments within the crypto community, leading to speculation about clandestine buys occurring in the background.

Seyffart also addressed concerns about secret purchases prior to SEC approval. While acknowledging that it is possible, he emphasized that institutions like BlackRock typically buy Bitcoin close to the launch date rather than weeks in advance.

Other Players in the Market

Seyffart also highlighted that other players in the market, such as Bitwise, are considering seedings of up to $200 million. This comes as BlackRock has already submitted an application for an Ethereum spot ETF, sparking speculation about which cryptocurrency might be next in line for an ETF.

BlackRock’s Bitcoin ETF

BlackRock’s ETF plan involves purchasing Bitcoin through a Seed Creation Basket, creating the necessary foundation for the ETF’s launch. Bloomberg’s Eric Balchunas noted BlackRock’s plan to inject $10 million into its Bitcoin ETF as a significant move.

What is the significance of Blackrock’s involvement in the Bitcoin ETF

BlackRock’s filing for a Bitcoin ETF is a pivotal moment that bridges the gap between traditional finance and the burgeoning cryptocurrency market. The potential approval of this ETF could usher in a new era of legitimacy, acceptance, and mainstream adoption for cryptocurrencies.

As one of the most influential asset managers globally, BlackRock’s endorsement could inspire other institutional players to explore or increase their involvement in the cryptocurrency market.

Crypto experts generally view the BlackRock ETF play as a positive one across the board, price-wise. The relatively small pool of crypto owners could expand to give access to more people, potentially influencing the direction of assets.

BlackRock’s involvement in the crypto market could increase the legitimacy of cryptocurrencies. Despite its rising popularity, the size of the crypto market still pales in comparison to traditional assets. BlackRock’s involvement could help crypto reach its true potential.

The Race for Bitcoin ETF Approval

The race for the first spot in Bitcoin ETF has seen major institutions such as BlackRock, Ark, WisdomTree, and Invesco Galaxy update their S1 filings with the SEC. The final decision by the SEC is due by Jan. 10, and Seyffart anticipates a collective approval for all the applicants.

Potential Impact of BlackRock’s Bitcoin ETF

The potential approval and subsequent launch of BlackRock’s Bitcoin ETF could open doors for more institutional investments in Bitcoin. While uncertainties remain regarding regulatory approvals and market impacts, BlackRock’s strategic steps underline a pivotal moment in the evolution of Bitcoin investments.

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