In the latest amendment to its iShares Bitcoin Trust prospectus, BlackRock, the world’s largest asset manager, has sparked speculation by revealing its plans to commence seeding this month. This development has raised hopes for the potential launch of a Spot Bitcoin ETF in the near future.

The significance of Seeding

BlackRock’s decision to include seeding in its amendment has caught the attention of industry observers. Bloomberg analyst Eric Balchunas highlights that this mention was absent from the original filing. While cautioning against reading too much into it, Balchunas acknowledges the positive implications it carries.

Seeding an ETF involves providing initial funding to acquire a few creation units, which, in this case, would mean purchasing Bitcoin in exchange for ETF shares that can be openly traded from day one. Although seeding typically involves a relatively small amount of money, it serves as an instrumental step towards launching an ETF. While the exact amount of Bitcoin purchased by BlackRock remains undisclosed, the fact that they are initiating the seeding process is a promising sign of progress.

Alignment with Previous Predictions

Balchunas and his Bloomberg colleague James Seyffart have previously highlighted significant changes made to the ARK 21Shares Spot Bitcoin ETF prospectus. They suggested that the US Securities and Exchange Commission (SEC) might approve a fund as early as next year. Seyffart maintains these views, expressing confidence that a Spot Bitcoin ETF may receive approval by January 10, 2024. Coincidentally, this marks the deadline for the SEC to either approve or disapprove the ARK 21Shares Spot Bitcoin ETF.

Additional Promising Indicators

In another X post, Balchunas draws attention to another positive sign: BlackRock’s iShares Bitcoin Trust being listed on the Deposit Trust & Clearing Corporation (DTCC), responsible for clearing NASDAQ trades. Moreover, the fund’s ticker symbol has been confirmed as ‘$IBTC.’ These developments are crucial steps in the process of launching an ETF.

The Impact on Bitcoin’s Price

These positive developments have contributed to the current bullish sentiment surrounding Bitcoin, which recently surged to as high as $35,000. At the time of writing, Bitcoin is trading around $34,500, marking an increase of over 11% in the last 24 hours based on data from CoinMarketCap.

BlackRock’s decision to commence seeding for its iShares Bitcoin Trust marks a significant step towards the potential launch of a Spot Bitcoin ETF. With alignment among industry experts regarding the likelihood of approval, combined with other constructive signs such as DTCC listing and ticker symbol confirmation, hopes are high for a positive outcome. The ongoing developments within the cryptocurrency space indicate an exciting time ahead for Bitcoin enthusiasts and investors alike.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.