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- 1 BlackRock delayed the buying of BTC just before the anticipated announcement of Spot BTC ETF approval.
- 2 BlackRock announced the updated date for BTC purchases to be January 5, 2024.
- 3 Goldman Sachs is in talks to emerge and play the role of the Authorized Participant for BlackRock’s spot ETF.
Initially, Blackrock planned to purchase an enormous range of bitcoins worth $10 million on January 3, 2024. However, it was announced that the firm planned to halt its purchase as of now and delayed its purchase at the time.
BlackRock is one of the largest asset management firms and is also carrying the BTC ETF.
BlackRock’s Schedule for ETF Seeding
There are numerous anticipations surrounding the approval and disapproval of Bitcoin ETFs from different individuals involved in the crypto industry.
To pass ahead in the race for the release of the Bitcoin ETF, Seed Capital Investor, an associate of BlackRock, initially purchased BTC Seed Shares on October 27, 2023. The seed shares amounted to a total of $100,000.
Later, shares had been redeemed for cash in January and the Seed Capital Investor initiated the purchase of the Seed Creation Baskets, comprising 400,000 shares.
Furthermore, recent reports state and confirm that BlackRock has rescheduled the seeding process for its Bitcoin ETF.
Revelation of the Updated Date
The seeding of $10 million, which was initially scheduled for January 3, 2024, is now planned for January 5, 2024. It is a very crucial step towards the launch of the ETF.
Although BlackRock’s delayed decision is not a surprise or shock for investors. Such events require regulatory approvals, compliance processes, and careful consideration.
Bitcoin ETF Approvals
With the approval of spot BTC ETF, Bitcoin, and other cryptocurrencies, markets are experiencing huge volatility, showing sudden spikes and downfalls in BTC and others.
No other reason than spot BTC ETF approval could be cited for BlackRock’s delay in Bitcoin purchases.
Date of Significance
In the near term, crypto investors are hooked up as of January 5, 2024, and January 10, 2024. BlackRock is expected to purchase Bitcoin, so it is to be observed if it will process the purchase or delay it further.
Spot BTC ETF approval is quite a significant event to be observed in the market that can bring in huge volatility in the market.
Looking at the movement in the market on January 3, 2024. The crypto market has responded negatively to the expectation of the disapproval of ETF. So, if the SEC approves the BTC ETF, it can pull back the markets and bring in positive movement for the beginning of 2024.
It can also push BTC to the high mark of $46,000, which it missed hitting in the previous rally.
Other Developments in BlackRock
Goldman Sachs, an investment management firm, is in talks to become the AP of BlackRock and Grayscale for the spot BTC ETF launch. Both companies have not commented on the discussion yet.
Goldman is planning to play a key role as an Authorized Participant (AP) if the BTC ETF gets approved. Other giants from the Investment Banking industry will also join Goldman Sachs after the positive approval of spot BTC ETF.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
