The assumptions behind Blackrock’s $10 million Bitcoin ETF seeding were explained by James Seyffart.
The discussion revolves around the idea that BlackRock would invest $10 million in Bitcoin, which has sparked different opinions among crypto enthusiasts. So, the YouTube channel host started to wonder whether there were any covert purchases going on.
James Seyffart, an ETF analyst for Bloomberg, explained the reasoning behind Blackrock’s $10 million Bitcoin ETF seed. He made the case that there is a pattern to Blackrock’s ETF initiatives.
The analyst drew comparisons to BlackRock’s previous policies, noting that the company usually seeded between $5 million and $10 million at the outset. He went on to say that shortly after the ETF goes live, investors often pour in hundreds of millions—if not billions—of dollars. Bitwise and other market participants are contemplating seedings of up to $200 million, as pointed out by Seyffart.
Also, before the SEC gave its OK, he addressed the worries over covert acquisitions. He did not deny the possibility, but he stressed that large financial firms like BlackRock usually purchase Bitcoin around the launch day, not weeks in advance.
In addition, many are wondering whether cryptocurrency will be the next to get an exchange-traded fund (ETF) after the long-awaited Bitcoin spot ETF. Worth noting is that BlackRock has already applied for an Ethereum spot ETF. Furthermore, Grayscle is already in the process of turning its Ethereum Trust into an ETF.
The presenter wanted to know how the XRP, SOL, and Cardano exchange-traded funds (ETFs) were doing in the future. Aside from Ethereum, no other cryptocurrency, according to Seyffart, has a chance of becoming an ETF anytime soon.
According to Seyffart, further crypto ETFs need a dramatic shift in the regulatory landscape. He removed Gary Gensler from the equation and proposed that additional crypto ETFs may emerge with a new administration at the SEC.
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