BlackRock Allocates $2 Billion in Anticipation of Upcoming Approval for US Bitcoin ETF

Over time, Blackrock has had bold moves vis a vis ETF Bitcoin. And on the same, the US Securities and Exchange Commission (SEC) is on the verge of giving the green light to a spot Bitcoin ETF. Meanwhile, behind the scenes, BlackRock, an investment management firm, is actively gearing up for ETF trading. Over the past few weeks, BlackRock has emerged as one of the most assertive applicants, meeting the SEC’s requirements and potential approval discussions.

Blackrock Holds $2 Billion in BTC for Current Investors

Matthew Sigel, the Head of Digital Assets Research at Van Eck, shared that the firm has $2 billion (£1.6billion) in capital set aside. This amount will be directed towards its ETF by current Bitcoin holders looking to transition into the new spot Bitcoin ETFs during the inaugural trading week. 

This temporary measure could serve as an initial boost for the firm in the early trading sessions, paving the way for a more extensive strategy to acquire BTC based on the demand generated by its iShares spot Bitcoin ETF.

As we approach January 10, there’s a lot of anticipation regarding the approval of the spot Bitcoin ETF. Bloomberg analysts have hinted that SEC officials are actively preparing all applicants for a potential Bitcoin ETF launch on January 11, 2024. The US SEC is under deadline pressure, with January 10, 2024, being the date by which a decision on the approval of the Ark 21Shares Bitcoin ETF.

How is the Paperwork?

Beforehand, iShares from BlackRock, along with Valkyrie Bitcoin Fund, Bitwise, Grayscale, Hashdex, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Franklin Templeton, and ARK 21Shares, have all submitted 19b-4 amendments for their ETF applications. 

This shows that the paperwork is now in the last phases, with the SEC gearing up to officially approve the very first spot Bitcoin ETF in the United States.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.