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A Bloomberg analyst is reporting that BlackRock is \u201cseeding\u201d its spot Bitcoin (BTC<\/a>) exchange-traded fund (ETF).<\/p>\n Bloomberg senior ETF analyst Eric Balchunas notes<\/a> that BlackRock announced the seeding in a recent amendment to their spot BTC ETF filing with the U.S. Securities and Exchange Commission (SEC).<\/p>\n Their application, which is called the iShares Bitcoin Trust, hasn\u2019t been approved yet.<\/p>\n Explains<\/a> Balchunas,<\/p>\n \u201cSeeding an ETF is when initial funding is provided (typically) by a bank or broker-dealer used to purchase a few creation units (in this case Bitcoin) in exchange for ETF shares which can be traded in the open market on day one.<\/em><\/p>\n Note: Seeding is typically not a lot of money just enough to get ETF going. So I wouldn\u2019t read this as \u2018omg Blackrock is buying a ton of Bitcoin\u2019 at all but more the fact they doing it and disclosing it shows another step in the process of launching.\u201d<\/em><\/p>\n The analyst notes that seeding often happens when ETFs are \u201cpreparing to launch.\u201d<\/p>\n Balchunas also points out that the iShares Bitcoin Trust has been listed on the Depository Trust & Clearing Corporation (DTCC), which clears trades for the Nasdaq. The ETF\u2019s ticker will be IBTC.<\/p>\n BTC is trading at $33,952 at time of writing.<\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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