The world’s largest asset manager, BlackRock, has submitted a new amendment to its S1 filing with the US SEC (Securities and Exchange Commission) regarding its spot Bitcoin (BTC) ETF (Exchange Traded Fund) application.
According to the document, the asset management firm will use a cash-only approach for its ETF. BlackRock will accept cash and buy Bitcoin (BTC) to create new shares. Firms can use two methods to issue shares: cash creation and in-kind. BlackRock has opted for the former. For the “in-kind” method, the firm would have to use BTC to create the shares. The firm recently received $100,000 in seed funds from an investor who took delivery of 4000 shares.
Bloomberg’s senior ETF analyst, Eric Balchunas, took to X and stated, “BlackRock has gone cash only. That’s basically a wrap. Debate over. In-kind will have to wait. It’s all about getting ducks in row bf holidays. Good sign.“
When will BlackRock’s spot Bitcoin ETF launch?
The US SEC has postponed all its 2023 deadlines for its decision on a spot BTC ETF. According to Bloomberg analysts, the US SEC could approve one or more spot BTC ETFs by Jan. 10, 2024. Famous crypto proponent Anthony Scaramucci also believes the SEC might approve one or more applications by early January 2024.
If the SEC approves a spot BTC ETF, it could push the crypto market into a 2021-like rally, if not better. Moreover, BTC will undergo its next halving cycle in April next year. Both developments are bullish and could push the original cryptocurrency to a new all-time high. According to Blockstream CEO Adam Beck, who is also a suspected identity of Satoshi Nakamoto, BTC could hit $100,000 after both events.