BlackRock Bitcoin Holders Are Committing $2B To New ETF Launch

Key Points:

• BlackRock is poised to invest billions in the debut of the first U.S. Bitcoin ETF next week.
• Reports suggest that the asset management giant has secured $2 billion in commitments from internal BlackRock Bitcoin holders.
• The move follows amended filings and extensive SEC discussions, with high expectations for potential approval and potential record-setting trading volumes and assets under management.

In a groundbreaking development eagerly awaited by Bitcoin enthusiasts, reports suggest that BlackRock, the colossal asset management firm, is poised to inject billions as seed capital into the first U.S. Bitcoin exchange-traded fund (ETF) next week.

BlackRock Bitcoin Holders: $2 Billion Set for U.S. Bitcoin ETF Launch

According to a credible source, the company has garnered commitments amounting to $2 billion from existing BlackRock Bitcoin holders within the organization, indicating a significant push towards an SEC-approved Bitcoin ETF in its inaugural week of trading.

The move by BlackRock, a major contender among those vying for a spot Bitcoin ETF, gained momentum as the company filed amended Forms 19b-4 late last Friday. This crucial step brings the asset management giant closer to potential approval by the U.S. Securities and Exchange Commission (SEC).

Recent filings outline proposals for rule changes on stock exchanges, paving the way for the much-anticipated ETFs, following extensive deliberations between BlackRock and the SEC in the preceding weeks.

Renowned Bloomberg ETF analyst Eric Balchunas supported the speculation in a tweet, envisioning that BlackRock’s injection could “blow away all first day/week volume/aum records for an ETF.”

BlackRock’s strategic update in S-1 filings last month, substituting cash for in-kind redemption, signifies a significant shift. Cash redemptions involve converting Bitcoin back into cash before traders receive it—a model widely adopted in the ETF industry and among futures Bitcoin ETFs, deemed safer by the SEC. Should the Bitcoin ETF receive approval, BlackRock Bitcoin holders anticipate a potential surge, marking a new era for cryptocurrency investments.