BlackRock Set to Buy $10 Million in Bitcoin: Is a Bitcoin ETF Approval Imminent?

BlackRock's $10 Million Bitcoin Purchase and Bloomberg's SEC Approval Prediction Could Pave the Way for Bitcoin ETFs to Become a Reality Soon Here's the Latest News.

Today, BlackRock is set to buy $10 million worth of BTC while a Bloomberg expert predicts that the SEC will soon approve Bitcoin spot ETFs.

📅 Last updated: January 4, 2024 23:13 EST | ⌛ 2 min read

Bitcoin ETF approval could be on the horizon as BlackRock plans a major BTC purchase and experts say the SEC is cornered into allowing regulated crypto funds. Image by Woraphon, Adobe Stock.

Asset management firm BlackRock is set to purchase $10 million worth of Bitcoin on Friday, fueling speculation that the Securities and Exchange Commission (SEC) may soon approve Bitcoin spot exchange-traded funds (ETFs).

During a private webinar with CryptoQuant on Thursday, Bloomberg Analyst James Seyffart predicted the SEC will likely approve several Bitcoin spot ETF applications in the coming days, indicating that the SEC has run out of reasons to deny Bitcoin ETFs after a recent court ruling against the regulatory agency.

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“The SEC is either going to have to come up with a new reason. Because you’ve been denying these ETFs for all these reasons. Courts said those reasons don’t matter anymore, and now you’re coming out with new reasons,” Seyffart said. “I don’t think that’s an option for the SEC. The other option is to get them to withdraw, in which case, again, I don’t think that’s likely because the SEC is backed into a corner here. I think they have to approve.”

BlackRock’s Bitcoin Strategy Amidst Regulatory Developments

BlackRock revealed its plans for the $10 million Bitcoin buy in an amendment filing for its proposed spot ETF. The purchase comes from the proceeds of the fund’s seed capital investments back in October.

While the seed purchase doesn’t guarantee an ETF launch, Seyffart said it signals BlackRock’s confidence in imminent SEC approval. Rival firm Bitwise has also said last week it could seed its proposed Bitcoin ETF with up to $200 million.

Bitcoin ETF Applications Piling Up

The SEC has rejected over a dozen Bitcoin ETF applications so far but is now cornered into approving some, according to Seyffart, and he expects official SEC approval between January 8 and January 10.

Bitcoin ETFs would allow mainstream investors easy exposure to Bitcoin through brokerage accounts for the first time. The SEC has previously cited Bitcoin market manipulation and lack of regulation as reasons for rejecting applications.

At least six companies have Bitcoin ETF applications awaiting SEC decisions. Approvals would expose the $850 billion Bitcoin market to millions of retail and institutional investors.

As the financial community awaits the SEC’s verdict, the implications of these decisions will undoubtedly shape the future trajectory of cryptocurrency investment.

📚 Reference Links:

• BlackRock set to buy $10 million in Bitcoin
• Bloomberg Analyst James Seyffart predicted
• Bitcoin ETF Applications Piling Up
• Seed capital investments back in October
• Seyffart said it signals BlackRock’s confidence
• Bitwise could seed its proposed Bitcoin ETF with up to $200 million
• At least six companies have Bitcoin ETF applications

🤔 Q&A:

Q: What does BlackRock’s purchase of $10 million worth of Bitcoin signify? BlackRock’s purchase of $10 million worth of Bitcoin indicates their confidence in the imminent approval of Bitcoin spot exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC). It is a strong signal that BlackRock believes regulatory developments are favorable, and they are positioning themselves for potential future success in the cryptocurrency market.

Q: Why is the SEC expected to approve Bitcoin ETFs soon? According to Bloomberg Analyst James Seyffart, the SEC is now cornered into approving Bitcoin ETFs due to recent court rulings against the regulatory agency. The SEC has been denying ETF applications for various reasons, but these reasons have been invalidated by the courts. The SEC will either have to come up with new reasons to deny ETFs, which is unlikely, or approve them. Seyffart expects official SEC approval between January 8 and January 10.

Q: How would Bitcoin ETFs impact the cryptocurrency market? Bitcoin ETFs would provide mainstream investors with easy access to Bitcoin through brokerage accounts for the first time. This would open up the $850 billion Bitcoin market to millions of retail and institutional investors, potentially leading to increased demand and liquidity. It could also add a level of legitimacy and regulatory oversight, addressing the SEC’s concerns about market manipulation and lack of regulation.

Q: Are there other companies awaiting SEC decisions on Bitcoin ETF applications? Yes, there are at least six other companies with pending Bitcoin ETF applications awaiting SEC decisions. These companies are also vying for approval to offer Bitcoin ETFs, recognizing the potential for significant market opportunities. If approved, it would further expand the options available to investors and promote cryptocurrency’s integration into traditional financial systems.

Q: How will the future trajectory of cryptocurrency investment be influenced by these developments? The SEC’s decisions regarding Bitcoin ETFs will have a profound impact on the future trajectory of cryptocurrency investment. Approval of ETFs would pave the way for increased institutional and retail participation in the market, potentially leading to greater adoption and mainstream acceptance of cryptocurrencies. However, if the SEC continues to deny ETF applications, it may hinder the growth and integration of digital assets within the traditional financial system.

💬 What are your thoughts on the potential approval of Bitcoin ETFs by the SEC? Share your insights below and don’t forget to invite your friends to join the discussion! 👇

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies involves risks, and readers should do their own research and consult with a professional financial advisor before making any investment decisions.

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Sources: 1. BlackRock set to buy $10 million in Bitcoin 2. Bloomberg Analyst James Seyffart predicted 3. Bitcoin ETF Applications Piling Up 4. Seed capital investments back in October 5. Seyffart said it signals BlackRock’s confidence 6. Bitwise could seed its proposed Bitcoin ETF with up to $200 million 7. At least six companies have Bitcoin ETF applications

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