- BlackRock, a major asset manager, is preparing to launch a Bitcoin ETF after receiving seed funding for it and filing the necessary paperwork.
- BlackRock is the largest and most prestigious Wall Street firm to seek SEC approval for a Bitcoin ETF, signaling growing interest in crypto from traditional finance.
- Analysts predict the SEC will likely approve a Bitcoin ETF in early 2023, finally allowing mainstream investors easy exposure to crypto investments.
BlackRock, the world’s largest asset manager, is making moves that suggest it is preparing to launch a Bitcoin exchange-traded fund (ETF). This would be a major milestone for both the crypto and traditional finance worlds.
BlackRock Receives Seed Funding for a Bitcoin ETF
BlackRock has received $100,000 in seed funding from an investor for its Bitcoin ETF, according to a recent filing. The seed investor purchased shares from BlackRock’s iShares Bitcoin Trust on October 27. Typically, a seed capital investor funds a new ETF to help get it up and running on a stock exchange.
BlackRock is the Most Prominent Wall Street Firm Seeking a Bitcoin ETF
Of all the firms that have applied to the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin ETF, BlackRock is the biggest and most prestigious. The SEC is currently reviewing a number of Bitcoin ETF applications.
An ETF Would Give Mainstream Investors Crypto Exposure
A Bitcoin ETF would allow everyday investors to gain exposure to Bitcoin through buying shares of the fund. Unlike a Bitcoin futures ETF, a spot Bitcoin ETF holds actual Bitcoin. The SEC has rejected past Bitcoin ETF applications, citing concerns over potential for manipulation.
Analysts Believe SEC Approval is Imminent
BlackRock’s application was seen as a game changer, since it signaled growing demand for crypto exposure from traditional finance. Bitcoin’s price jumped on the news. Now, ETF analysts predict the SEC will likely approve a Bitcoin ETF in early 2024.
Conclusion
With backing from a titan like BlackRock, the long-awaited Bitcoin ETF seems primed for takeoff. The implications would be immense, allowing mainstream investors easy exposure to crypto. The SEC is showing signs it may finally be ready to green-light a Bitcoin ETF.
