BlackRock to Purchase $10 Million Worth of Bitcoins
Date: 2024-01-06 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
BlackRock, a leading capital management firm, has announced its plans to invest $10 million in Bitcoin, with the purchase scheduled for January 5th. Initially planned for January 3rd, the company has delayed the transaction to ensure full compliance with regulatory requirements.
This investment is related to a "seeding sale" conducted ahead of the launch of a spot Bitcoin ETF. If approved by the U.S. Securities and Exchange Commission (SEC), the ETF's assets could expand to $200 million.
Bloomberg analyst James Seiffart believes that the SEC has run out of reasons to reject ETF applications. Furthermore, Grayscale previously demonstrated in court that the reasons cited by the Commission for rejections were insufficient.
The SEC could approve Bitcoin ETF applications by the end of the week or between January 8th and 10th. Thirteen out of fourteen companies have already updated their applications, including BlackRock, Fidelity, VanEck, and other major asset managers.
Observers largely view the approval of ETFs as positive for Bitcoin's price. Predictions range from Bitcoin reaching anywhere between $60,000 and $500,000 after SEC approval, though CryptoQuant warns of potential price declines.
