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Categories: Bitcoin
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October 25, 2023

BlackRock Seeding Spot-Based Bitcoin ETF As Financial Giant Gears Up To Launch BTC Trust: Bloomberg Analyst

By Daily Hodl Staff

A Bloomberg analyst is reporting that BlackRock is “seeding” its spot Bitcoin (BTC) exchange-traded fund (ETF).

Bloomberg senior ETF analyst Eric Balchunas notes that BlackRock announced the seeding in a recent amendment to their spot BTC ETF filing with the U.S. Securities and Exchange Commission (SEC).

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Their application, which is called the iShares Bitcoin Trust, hasn’t been approved yet.

Explains Balchunas,

“Seeding an ETF is when initial funding is provided (typically) by a bank or broker-dealer used to purchase a few creation units (in this case Bitcoin) in exchange for ETF shares which can be traded in the open market on day one.

Note: Seeding is typically not a lot of money just enough to get ETF going. So I wouldn’t read this as ‘omg Blackrock is buying a ton of Bitcoin’ at all but more the fact they doing it and disclosing it shows another step in the process of launching.”

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The analyst notes that seeding often happens when ETFs are “preparing to launch.”

Balchunas also points out that the iShares Bitcoin Trust has been listed on the Depository Trust & Clearing Corporation (DTCC), which clears trades for the Nasdaq. The ETF’s ticker will be IBTC.

BTC is trading at $33,952 at time of writing.

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