- The investment giant disclosed this in a new filing with the U.S. Securities and Exchange Commission (SEC).
- Initial capital represents the starting financing that allows an ETF to finance creation units, enabling shares to be offered and traded on the open market.
- ETF analysts noted in their recent posts that BlackRock and some other firms are continuing discussions with the SEC.
BlackRock, the world’s largest asset manager, has revealed the initial capital of $100,000 for its proposed spot Bitcoin ETF.
BlackRock Announces Initial Capital for ETF
BlackRock, the world’s largest asset manager, disclosed the $100,000 “initial capital” it received for the proposed Bitcoin (BTC) exchange-traded fund (ETF). The investment giant revealed this in a new filing with the U.S. Securities and Exchange Commission (SEC).
BlackRock stated, “The capital contributor agreed to purchase $100,000 worth of shares on October 27, 2023, and received delivery of 4,000 shares on October 27, 2023, at a price of $25.00 per share (‘initial shares’).”
The initial capital represents the starting financing that allows an ETF to finance creation units, enabling shares to be offered and traded on the open market. BlackRock’s proposed “iShares Bitcoin Trust” will invest in bitcoin rather than futures contracts tied to the leading cryptocurrency and is among the 13 applications awaiting regulatory approval.
Approval likelihood set at 90%
With a broad expectation that one or more spot ETFs will likely be approved in early next year, Bloomberg analysts have stated a 90% probability of approval in January. Meanwhile, ETF analysts noted in their recent posts that BlackRock and some other firms are continuing discussions with the SEC. BlackRock updated its ETF filing on December 4, Monday.
