BlackRock’s Potential $10 Million Bitcoin Purchase Sparks ETF Speculation

Analysts anticipate that BlackRock, the largest asset management firm in the world and one of the leading contenders in the race to create the first spot Bitcoin exchange-traded fund (ETF) in the United States, will make a purchase of ten million dollars worth of Bitcoin on January 3, 2024.

James Seyffart, a market research analyst, made a post on X, which was then known as Twitter, on December 23. In the post, he highlighted BlackRock’s ambitions to seed its exchange-traded fund (ETF) with the bitcoin that it intends to purchase.

Seyffart followed up by stating that the document specifying the Bitcoin purchase has not been completed, approved, or deemed “effective,” despite aligning with our January approval prediction.

According to him, the introduction of the exchange-traded fund (ETF) would not necessarily be the result of the injection of cash, nonetheless, BlackRock might anticipate a release not long after that.

Seyffar dismissed the inclusion of the date January 3 as mere “teasing,” linking it to the creation of Bitcoin’s genesis block. A user on the X platform questioned Seyffart about his anticipation of a seed size of ten million dollars.

In response, Seyffart stated that the seed size is “fairly standard,” but that it is also “subject to change.” Eric Balchunas, an analyst at Bloomberg, also posted about the projected buy on January 3, stating that BlackRock’s $10 million Bitcoin purchase would be a “pretty big bump” from its initial seed funding of $100,000 back in October.

Bloomberg published Balchunas’s piece in late December. In addition, Balchunas commented on the filing of the Bitwise S-1, which aims to seed Bitwise’s upcoming spot Bitcoin ETF with $200 million. He stated that this amount “blows away” what BlackRock expects to purchase.

“That’s gonna be a huge help in the early days of the race. No AP named but prob forthcoming.”

Many different claims suggest that the date has been pushed back to January 5th, despite the initial projection of January 3rd as the date for BlackRock’s purchase of its Bitcoin seed money. The dates in question are still up for debate.

BlackRock, Van Eck, and Valkyrie submitted last-minute revisions in response to the deadline for amendments to spot Bitcoin ETF applications established by the United States Securities and Exchange Commission (SEC) on December 29, 2023.

By January 10, 2024, commentators expect that the SEC will have made its decision regarding the exchange-traded fund (ETF).