In a move that aligns with the growing anticipation surrounding the potential approval of a Bitcoin spot exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC), BlackRock, the world’s largest asset manager, had initially planned to purchase an impressive $10 million worth of BTC on January 3rd. However, recent reports indicate that Blackrock has now postponed this purchase.
BlackRock Adjusts Schedule For Bitcoin ETF Seeding
The SEC’s anticipated approval of a Bitcoin ETF has generated significant interest and speculation within the cryptocurrency market.
To pave the way for the Bitcoin ETF launch, BlackRock’s affiliate, Seed Capital Investor, initially purchased Seed Shares on October 27, 2023. The Seed Shares consisted of 4,000 shares at a per-share price of $25.00, amounting to a total of $100,000.
These shares were later redeemed for cash in January, and the Seed Capital Investor proceeded to purchase the Seed Creation Baskets, comprising 400,000 shares, at the same per-share price.
However, recent reports confirm that BlackRock has rescheduled the seeding process for its highly anticipated Bitcoin ETF. The initial $10 million seeding scheduled for January 3, which serves as a crucial step toward the ETF’s launch, is now planned for January 5th.
It is worth noting that BlackRock’s decision to adjust the schedule should not come as a surprise, as regulatory approvals and compliance processes often require careful consideration.
Bitcoin ETF Approval Odds Surge On Polymarket
Data from the prediction market Polymarket has sent ripples of excitement through the cryptocurrency community, as it reveals a significant surge in traders’ confidence regarding the approval of a Bitcoin ETF by the US SEC before January 15.
The platform’s contract price has climbed to an impressive 89 cents, indicating an 89% probability of the SEC greenlighting the highly anticipated Bitcoin ETF. Notably, this figure has seen a remarkable increase from 50% just last month.
Polymarket, a decentralized prediction market platform, allows users to speculate on the outcomes of various events by trading virtual shares. In this case, traders have staked an impressive sum of $437,394 on the SEC’s approval of the Bitcoin spot ETF before the mid-January deadline.
The surge in the contract price and the corresponding increase in traders’ confidence reflects the growing optimism surrounding the prospects of a Bitcoin ETF gaining regulatory approval.
Such an approval could open the floodgates for institutional investors and further legitimize the cryptocurrency market.
Interestingly, the probability reflected by the contract price on Polymarket is not merely a speculative sentiment but is backed by real investments made by traders who believe in the likelihood of a positive outcome.
As the January 15 deadline approaches, market participants will closely monitor any updates from the SEC and continue to trade on prediction platforms like Polymarket, reflecting their evolving expectations.
As of this writing, Bitcoin has climbed to the $45,200 mark with a significant 7% uptrend in just 24 hours ahead of the potential approval of these index funds.
Featured image from Shutterstock, chart from TradingView.com