BlackRock appears to be preparing to launch a Bitcoin ETF in October

BlackRock, the world’s largest asset manager, appears to be preparing to launch its much-anticipated Bitcoin ETF later in October, with filings showing the company has set the current month as the seeding start for its Bitcoin exchange-traded fund, iShares Bitcoin.

There was information revealed afternoon this Monday (23). Scott JohnsonAmerican Investigative Lawyer, and Commentary Eric Balchunasa Bloomberg analyst who shared his thoughts on the concept of the ETF spread and how it typically indicates the launch of an ETF.

An analyst has leaked a BlackRock document detailing the financial giant’s intention to start “seeding” a Bitcoin ETF later this month. The company’s statement indicates active movement and perhaps causes optimism about the future of the financial product.

“BlackRock states in their recent Bitcoin ETF amendment that they will launch the ETF in October. I don’t want to read too much into it, but it’s new information that wasn’t there originally, so it’s worth noting (especially since it’s BlackRock).” — Dis Eric Balchunas.

BlackRock may launch Bitcoin ETF in October

Balchunas explains that seeding an ETF is a preliminary step to launching any exchange-traded fund. It involves a bank or broker providing seed capital that is used to purchase units of creation – in this case, bitcoins.

In exchange for this financing, the bank or broker receives shares of the ETF that are ready for public trading on the first day of the fund’s launch.

However, the analyst says, it is important to emphasize that the seeding, which is part of the multiplication, does not necessarily mean a massive purchase of the underlying asset.

In other words, BlackRock’s move to launch an ETF should not be interpreted as the company’s acquisition of large volumes of bitcoin. Instead, sowing is carried out with enough capital to start ETF operations.

When asked if seeding an ETF is abnormal, Eric said yes, but such a move only happens when an exchange-traded fund is about to be launched.

Aren’t all ETFs supposed to be seeded? the user asked.

Yes, totally fine, but that’s the point, it happens when ETFs are getting ready to launch 🙂 – answered the Bloomberg analyst.

The ETF receives the ticker $IBTC

Another fact that attracted attention is that BlackRock’s iShares Bitcoin Trust ETF now listed on the Depository Trust Clearing Corporation (DTCC) ticker $IBTC.

According to analysts, the listing is an important milestone as it means that the ETF has been recognized as a legitimate financial instrument by going through the rigorous processes and checks required to launch.

By joining the list of DTCC, the main clearing and settlement infrastructure in the US, the fund can more easily trade between brokers and other financial institutions, increasing its liquidity and availability in the market.

In addition, it indicates that the ETF meets safety and custody standards, providing investors with an additional level of confidence.

With speculation mounting over ETF approval, investors are confident that an SEC decision is imminent and could come before the end of 2023.

Meanwhile, Bitcoin rose sharply this Monday, surpassing the USD 31,000 mark.

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