Crypto asset manager Bitwise says that an unnamed investor wants to seed hundreds of millions of dollars into its planned spot market Bitcoin (BTC) exchange-traded fund (ETF).
According to a new S-1 document filed with the U.S. Securities and Exchange Commission (SEC), an unidentified investor is planning on seeding $200 million into Bitwise’s potential ETF, though no binding agreement has been made.
“[An unnamed investor] has indicated an interest in purchasing an aggregate of up to $200 million of shares in this offering from Authorized Participants (APs) or in the marketplace through broker-dealers.
However, because indications of interest are not binding agreements or commitments to purchase, this potential purchaser could determine to purchase more, fewer or no shares.”
According to Bloomberg analyst and ETF expert Eric Balchunas, the $200 million amount dwarfs that of the seed money for BlackRock, the world’s largest asset management firm, which is slated for just $10 million.
“Bitwise S-1 has been filed and it looks like someone (I wonder who) is going to seed BITB with $200 million, which blows away BlackRock’s $10 million (that we know of). That’s gonna be [a] huge help in [the] early days of [the] race. No AP named but probably forthcoming.”
Bitcoin is trading for $42,606 at time of writing, a marginal increase during the last 24 hours.
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