BlackRock, the largest asset manager in the world, has recently submitted an updated version of its spot BTC ETF application to the SEC. The largest crypto index fund manager, Bitwise, also took similar action but had submitted an updated application an hour before BlackRock did.
Quick Take:
- BlackRock and Bitwise have updated their Spot Bitcoin ETF applications.
- SEC filing highlights how BlackRock received a sum of $100K for its BTC ETF.
- Bitcoin’s surge along with widespread market recovery signifies the excitement surrounding early ETF approvals.
- The SEC might approve the first BTC ETF earlier next year.
Analysts throughout the crypto market believe that the SEC is possibly conducting discussions with all Bitcoin spot ETF issuers. The authority is handing them instructions, considering how amendments are published consequently.
Furthermore, BlackRock’s recent update includes additional efforts from the trust regarding monitoring as well as administering unusual price movements. The platform has also revamped its anti-money laundering compliance, despite attaching a detailed audit report on the trust.
SEC Filing Reveals BlackRock Received a $100K Seed Fund for ETF
As per the recent filing, it has come to light that BlackRock received almost $100K from an unknown investor for its spot Bitcoin ETF. The filing made it clear that the investor agreed to purchase $100K in shares in exchange for 4000 shares at a $25 per share price.
The seed funding makes it possible for an ETF to fund the creation of any underlying shares so they can be offered and traded in the open market. The recent filing has also clarified the asset manager’s plans to pay the sponsor’s fee.
Similarly, BlackRock can charge its fees via a loan instead of resorting to selling BTC. This would inevitably prevent the price of BTC from changing drastically.
Furthermore, the settlement of all trade credits would occur on the business day following the execution day, a move that is expected to attract a financing fee of up to almost 11%.
Bitcoin (BTC) Continues to Surge
People have associated the widespread recovery with the potential early approval of these Bitcoin Spot ETFs. The largest cryptocurrency by market cap, Bitcoin, has been continuously on the rise. Over the previous 7 days, the token has managed to surge by almost 12.41%.
At the time of writing, the token’s trading price has gone up to approximately $41,694. The market cap currently stands at the $815 billion mark. Similarly, trading volumes surged by 26.48% to $33 billion.
BlackRock’s ETF Application Ignites Institutional Interest
BlackRock was among the first institutional giants to file a Spot Bitcoin ETF application in July this year. Additional organizations followed in similar footsteps by filing applications of their own.
The SEC had originally rejected proposals filed before the one by BlackRock, but analysts currently predict that the regulator will eventually approve the first BTC ETF at the start of 2024. This could be a major breakthrough for the crypto market.
