BlackRock Received $100K Seed Funding for Its Spot Bitcoin ETF

Asset manager BlackRock received $100,000 in seed funding from an unknown investor who purchased 4,000 seed shares for its spot Bitcoin ETF.
BlackRock Received $100K Seed Funding for Its Spot Bitcoin ETF

According to a newly amended SEC filing, BlackRock got $100,000 in seed money for its spot Bitcoin exchange fund from an unidentified investor.

The petition states that on October 27, 2023, the seed capital investor paid $25 for 4,000 trust shares. According to the filing, “The Seed Capital Investor will act as a statutory underwriter in connection with this purchase.”

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BlackRock’s iShares Bitcoin Trust Filing – sec.gov

When the company borrows Bitcoin or cash in the form of trade credit, it also intends to pay the lender a sponsor fee. According to the petition, BlackRock can avoid affecting the price of Bitcoin by charging a fee through a loan rather than by selling it.

Among the hundreds of other institutional heavyweights who applied to the SEC for spot Bitcoin ETFs, BlackRock is the biggest and one of the pioneers. The company is launching an exchange-traded fund (ETF) called “iShares Bitcoin Trust,” which would invest in actual Bitcoin as opposed to its underlying futures. Earlier today, the asset manager revised its filing for the spot Bitcoin ETF.

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