BlackRock $10 Million Bitcoin Purchase Will Happen Today, Expert Says SEC Is Backed Into A Corner
06 January 2024 - 12:00AM
NEWSBTC
The world’s largest asset manager, BlackRock, is set to make a
significant Bitcoin purchase on January 5. This comes as Bloomberg
analyst James Seyffart hinted that the Securities and Exchange
Commission (SEC) has no choice but to approve the pending Spot
Bitcoin ETFs finally. BlackRock To Purchase $10 Million Worth
Of Bitcoin As part of efforts to seed its Spot Bitcoin ETF,
BlackRock will purchase $10 million worth of BTC on January 5. The
asset manager had earlier scheduled this Bitcoin purchase for
January 3. However, it was eventually postponed to this later date,
possibly in a bid to ensure they gain all regulatory approvals and
be fully compliant. Related Reading: Dogecoin Volume Explodes
190% But DOGE Price Remains Low, What’s Going On? BlackRock had
revealed how the sum of $10 million had come about in the latest
amendment to its S-1 filing. The world’s largest asset manager had
noted that the said sum was proceeds from the sale of its “Seed
Creation Baskets.” The firm initially seeded its ETF back in
October, with the fund’s Seed Capital Investor purchasing $100,000
in shares. Bloomberg analyst James Seyffart had previously
warned that Blackrock’s plans to seed their ETF with this amount
doesn’t mean they are launching just yet. However, he remarked that
there was a possibility that the asset manager was doing so in
anticipation of an imminent launch. Meanwhile, it is also worth
mentioning that BlackRock’s initial seed fund could eventually be
outranked. Fellow issuer Bitwise revealed in their latest amendment
to their Spot Bitcoin ETF that they could potentially seed their
fund with up to $200 million if they eventually get approval from
the SEC. BTC bulls fail to hold $44,000 | Source: BTCUSD on
Tradingview.com The SEC Is Backed Into A Corner Bloomberg analyst
James Seyffart recently shared his thoughts on whether or not an
approval order was going to come from the SEC soon enough.
According to Cointelegraph, Seyffart stated that there was no way
the Commission could get issuers to withdraw their application as
they are already backed into a corner. Related Reading: XRP
Price Set To Spike As Ripple Enters Another $1.5 Trillion Industry
The analyst made this comment following his assertion that the
regulator has run out of reasons to deny these Spot Bitcoin ETFs.
He alluded to the Grayscale case, where the court ruled that the
SEC’s reasons for denying the asset manager’s application were
insufficient. With this in mind, Seyffart said that the SEC is
likely to approve these funds soon enough. These approvals
could come as soon as next week, going by the analyst’s projection.
Seyffart stated that he expects an official approval order to come
between January 8 and 10. This is despite the recent rumors that
the SEC could approve these funds before this week runs out.
Featured image from Finextra Research, chart from Tradingview.com
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