- James Seyffart clarified the assumptions surrounding Blackrock’s $10 million seeding in the Bitcoin ETF.
- He argued that Blackrock follows a pattern in its ETF endeavors, typically initially seeding $5 million to $10 million.
- He added that this is followed by hundreds of millions or even a billion dollars, usually a few hours after the launch of the ETF.
Discover Crypto YouTube channel host and Bloomberg ETF analyst James Seyffart has elaborated on the involvement of prominent asset manager Blackrock in potential Bitcoin accumulation ahead of the upcoming Bitcoin spot ETF approval.
The conversation is grounded in the speculation that BlackRock would seed $10 million in Bitcoin, stirring varied sentiments within the crypto community. As a result, the YouTube channel host questioned whether clandestine buys were occurring in the background.
Bloomberg ETF analyst James Seyffart clarified the assumptions surrounding Blackrock’s $10 million seeding in the Bitcoin ETF. He argued that Blackrock seems to follow a pattern in its ETF endeavors.
Drawing parallels with BlackRock’s past practices, the analyst highlighted that the firm typically seeds within an initial range of $5 million to $10 million. He added that this is followed by hundreds of millions or even a billion dollars, usually a few hours after the launch of the ETF. Seyffart also highlighted that other players in the market, such as Bitwise, are considering seedings of up to $200 million.
Furthermore, he addressed the concerns about secret purchases prior to SEC approval. While acknowledging that it is possible, he emphasized that institutions like BlackRock typically buy Bitcoin close to the launch date rather than weeks in advance.
Moreover, the eagerly awaited approval of the Bitcoin spot ETF has sparked speculation about which cryptocurrency might be next in line for an ETF. It is worth mentioning that BlackRock has already submitted an application for an Ethereum spot ETF. Besides, Grayscle has moved to convert its Ethereum Trust to an ETF.
The host sought clarity about the outlooks for XRP, Solana (SOL), and Cardano ETFs. Seyffart argued that, besides Ethereum, no other crypto asset might get an ETF in the near future.
Seyffart cited the need for a significant change in regulatory dynamics for additional crypto ETFs. He suggested more crypto ETFs could surface with a new administration at the SEC, removing Gary Gensler from the equation.
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