Bitcoin surges to 34K! Is BlackRock's Bitcoin spot ETF launch promising?

The highly anticipated Bitcoin spot ETF, iShares Bitcoin Trust IBTC, from the asset management giant BlackRock has appeared on the maintenance list of the Depository Trust and Clearing Corporation (DTCC) in the United States. BlackRock is also expected to inject seed funding into the ETF in October. Bitcoin has been quietly rising since yesterday, reaching a high of 34K early this morning!

Is BlackRock's Bitcoin Spot IBTC Launch in the Works?

Bloomberg ETF analyst Eric Balchunas shared in a post on X that in addition to IBTC being listed on DTCC to provide trading, clearing, settlement, custody, and information services for Nasdaq, BlackRock has recently proposed in a Bitcoin spot ETF amendment that they will inject seed funding for the ETF in October, which is new information not found in the original document.

The iShares Bitcoin Trust has been listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades). And the ticker will be $IBTC. Again all part of the process of bringing ETF to market.. h/t @martypartymusic pic.twitter.com/8PQP3h2yW0

— Eric Balchunas (@EricBalchunas) October 23, 2023

Seed ETF refers to initial funding provided by banks or broker-dealers to purchase some creation units, in this case, Bitcoin, in exchange for ETF shares that can be traded on the public market on the first day.

Balchunas reminds everyone that seed funding is usually not substantial, just enough to get the ETF running. Therefore, he does not interpret it as "BlackRock is buying a large amount of Bitcoin," but:

By doing so and disclosing this fact, it indicates another step forward towards the ETF launch!

Bitcoin Price Surges to 34K, Reaching a One-Year High

Bitcoin quietly crossed the $30,000 mark yesterday afternoon and maintained its strength even as the U.S. stock market remained weak due to ongoing geopolitical conflicts last night, reaching a high of 34,741 early this morning.

Furthermore, crypto-related stocks continued to rise after hours, with Coinbase up 9% to $81 and MicroStrategy up 15% to $403. Calculated at the Bitcoin price of 33,066 before deadline, MicroStrategy's 158,245 bitcoins have an average cost of $29,582, bringing unrealized gains of $555 million.

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