BlackRock's Bitcoin ETF, SEC Prospects, and Crypto's Path to $100,000

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BlackRock in their recent paperwork filed with the US Securities and Exchange Commission (SEC), they mentioned that instead of using actual Bitcoin to create new shares of the ETF, they will only accept cash.

So, if someone wants to invest in this BlackRock Bitcoin ETF, they would give BlackRock money (cash), and in return, BlackRock would use that money to buy Bitcoin. This is called a "cash-only approach." The alternative method, which BlackRock didn't choose, involves using actual Bitcoin to create new shares.

The document also mentions that BlackRock got $100,000 from an investor who wanted to buy 4000 shares of this Bitcoin ETF.

Bloomberg's senior ETF analyst, Eric Balchunas mentioned that BlackRock has chosen to use a "cash-only" approach for its ETF, meaning that investors will give money (cash) to BlackRock, and BlackRock will use that money to buy Bitcoin for the ETF.

Balchunas seems to be saying that this decision by BlackRock is significant and settles a debate. He believes that using only cash is a positive move and suggests that everything is falling into place before the holidays. In other words, BlackRock is making sure everything is set up smoothly for the Bitcoin ETF, and this decision to go "cash only" is seen as a good sign for the launch of the investment product.

Also Read: Bitcoin Price Prediction: The Definitive Guide to When BTC Will Hit All-Time High

BlackRock's Spot Bitcoin ETF Launch Date Revealed!

The US Securities and Exchange Commission (SEC) has delayed making decisions on any spot Bitcoin Exchange Traded Fund (ETF) applications until 2024. Bloomberg analysts and cryptocurrency advocate Anthony Scaramucci think that by January 10, 2024, the SEC might give approval for one or more of these Bitcoin ETFs. In simpler terms, they believe that the SEC could agree to the creation of investment funds that track the value of Bitcoin in early January 2024.

If the US Securities and Exchange Commission (SEC) approves a spot Bitcoin Exchange Traded Fund (ETF), it might lead to a significant increase in the cryptocurrency market, similar to the rally seen in 2021 or possibly even better. Additionally, Bitcoin (BTC) is set to go through its next halving cycle in April of the coming year.

According to Blockstream CEO Adam Back, who is also a person suspected to be Satoshi Nakamoto (the pseudonymous creator of Bitcoin), BTC could potentially reach $100,000. after these events.

Summarizing the blog, SEC delays Bitcoin ETF decisions until 2024, with potential approval by January 10. Analysts project approval could trigger a crypto market surge, reminiscent of 2021's rally. Adding to the optimism, Bitcoin's upcoming halving cycle in April and Blockstream CEO Adam Back's prediction of BTC reaching $100,000 post-approval contribute to a bullish outlook for the original cryptocurrency.

Also Read: The Ultimate Guide to BlackRock's Bitcoin ETF: Working Mechanism, Benefits, and Drawbacks