{"id":34797,"date":"2024-01-05T13:53:25","date_gmt":"2024-01-05T17:53:25","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=34797"},"modified":"2024-01-05T13:53:25","modified_gmt":"2024-01-05T17:53:25","slug":"blackrock-10-million-bitcoin-purchase-will-happen-today-expert-says-sec-is-backed-into-a-corner","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2024\/01\/05\/blackrock-10-million-bitcoin-purchase-will-happen-today-expert-says-sec-is-backed-into-a-corner\/","title":{"rendered":"BlackRock $10 Million Bitcoin Purchase Will Happen Today, Expert Says SEC Is Backed Into A Corner"},"content":{"rendered":"

The world\u2019s largest asset manager, BlackRock<\/a>, is set to make a significant Bitcoin purchase on January 5. This comes as Bloomberg analyst James Seyffart<\/a> hinted that the Securities and Exchange Commission (SEC) has no choice but to approve the pending Spot Bitcoin ETFs<\/a> finally.\u00a0<\/p>\n

BlackRock To Purchase $10 Million Worth Of Bitcoin<\/h2>\n

As part of efforts to seed its Spot Bitcoin ETF<\/a>, 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<\/a> to this later date, possibly in a bid to ensure they gain all regulatory approvals and be fully compliant.\u00a0<\/p>\n

BlackRock had revealed how the sum of $10 million had come about in the latest amendment to its S-1 filing<\/a>. The world\u2019s largest asset manager had noted that the said sum was proceeds from the sale of its \u201cSeed Creation Baskets.\u201d The firm initially seeded its ETF back in October<\/a>, with the fund\u2019s Seed Capital Investor purchasing $100,000 in shares.\u00a0<\/p>\n

Bloomberg analyst James Seyffart<\/a> had previously warned<\/a> that Blackrock\u2019s plans to seed their ETF with this amount doesn\u2019t 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<\/a>.<\/p>\n

Meanwhile, it is also worth mentioning that BlackRock\u2019s initial seed fund could eventually be outranked. Fellow issuer Bitwise revealed<\/a> 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.\u00a0<\/p>\n\n

The SEC Is Backed Into A Corner<\/h2>\n

Bloomberg analyst James Seyffart<\/a> recently shared his thoughts on whether or not an approval order was going to come from the SEC soon enough. According to Cointelegraph<\/a>, Seyffart stated that there was no way the Commission could get issuers to withdraw their application as they are already backed into a corner.\u00a0<\/p>\n

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<\/a>, where the court ruled that the SEC\u2019s reasons<\/a> for denying the asset manager\u2019s application were insufficient. With this in mind, Seyffart said that the SEC is likely to approve these funds soon enough.\u00a0<\/p>\n

These approvals could come as soon as next week, going by the analyst\u2019s projection. Seyffart stated<\/a> 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.\u00a0<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

The world\u2019s largest asset manager, BlackRock<\/a>, is set to make a significant Bitcoin purchase on January 5. This comes as Bloomberg analyst James Seyffart<\/a> hinted that the Securities and Exchange Commission (SEC) has no choice but to approve the pending Spot Bitcoin ETFs<\/a> finally.\u00a0<\/p>\n

BlackRock To Purchase $10 Million Worth Of Bitcoin<\/h2>\n

As part of efforts to seed its Spot Bitcoin ETF<\/a>, 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<\/a> to this later date, possibly in a bid to ensure they gain all regulatory approvals and be fully compliant.\u00a0<\/p>\n

BlackRock had revealed how the sum of $10 million had come about in the latest amendment to its S-1 filing<\/a>. The world\u2019s largest asset manager had noted that the said sum was proceeds from the sale of its \u201cSeed Creation Baskets.\u201d The firm initially seeded its ETF back in October<\/a>, with the fund\u2019s Seed Capital Investor purchasing $100,000 in shares.\u00a0<\/p>\n

Bloomberg analyst James Seyffart<\/a> had previously warned<\/a> that Blackrock\u2019s plans to seed their ETF with this amount doesn\u2019t 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<\/a>.<\/p>\n

Meanwhile, it is also worth mentioning that BlackRock\u2019s initial seed fund could eventually be outranked. Fellow issuer Bitwise revealed<\/a> 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.\u00a0<\/p>\n

The SEC Is Backed Into A Corner<\/h2>\n

Bloomberg analyst James Seyffart<\/a> recently shared his thoughts on whether or not an approval order was going to come from the SEC soon enough. According to Cointelegraph<\/a>, Seyffart stated that there was no way the Commission could get issuers to withdraw their application as they are already backed into a corner.\u00a0<\/p>\n

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<\/a>, where the court ruled that the SEC\u2019s reasons<\/a> for denying the asset manager\u2019s application were insufficient. With this in mind, Seyffart said that the SEC is likely to approve these funds soon enough.\u00a0<\/p>\n

These approvals could come as soon as next week, going by the analyst\u2019s projection. Seyffart stated<\/a> 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.\u00a0<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-34797","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/34797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=34797"}],"version-history":[{"count":1,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/34797\/revisions"}],"predecessor-version":[{"id":34806,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/34797\/revisions\/34806"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=34797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=34797"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=34797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}