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BlackRock's Bitcoin ETF Strategy Clarified by Bloomberg Analyst

23/12/2023 08:14

According to CryptoPotato, Bloomberg ETF analyst James Seyffart has clarified BlackRock's strategy for handling Bitcoin (BTC) prior to the approval of its highly anticipated spot ETFs. Seyffart explained that ETF applicants will only begin buying BTC within days of their funds' actual launch to seed the ETF with funds in advance, ensuring it is ready to sell shares to investors once live. He dismissed concerns about BlackRock 'front running' the market, stating that the company can still invest in BTC via other private products, such as their private Bitcoin trust. Inflows to alternative Bitcoin funds, including Canadian Bitcoin ETFs and futures-based ones in the United States, have broken records in recent months due to anticipation of an approval. Seyffart believes the chances of approval have increased following Grayscale's court victory over the Securities and Exchange Commission (SEC) in August. BlackRock revealed in its S-1 filing in October that it would seed its fund with $100,000 before launch, but this amount has since increased to $10 million, planned for January 3. Seyffart and other analysts expect a simultaneous approval of multiple Bitcoin spot ETFs between January 5 and January 10. Bitcoin derivatives markets are looking bearish ahead of that approval date, suggesting that many believe the ETF approval will be a 'sell the news' event. However, others, including former NYSE president Tom Farley, believe money will flood into the industry once an ETF is approved.

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