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BlackRock and other financial giants have entered the race to launch the first spot Bitcoin ETF in the United States.
The world’s largest asset manager, BlackRock, received $100,000 in seed funding from an unknown investor for its spot Bitcoin (BTC) exchange-traded fund (ETF) in October 2023, according to its latest United States Securities and Exchange Commission (SEC) filing.
The SEC filing revealed that the investor agreed to purchase 4,000 shares for $100,000 on Oct.
The latest filing by BlackRock also revealed certain details on the asset manager’s plans to pay the sponsor’s fee, where it plans to borrow Bitcoin or cash as trade credit from the trade credit lender on a short-term basis.
Related: ‘Buy the rumor, sell the news’ — Bitcoin ETF may spark TradFi sell-off
The settlement of trade credits will occur on the business day following the execution date, attracting a financing fee of 11% plus the federal funds target rate divided by 365 ((11% + fed funds target)/365).
ETF analyst Eric Balchunas called the new revelations an interesting development in the nerdiest way.
This is so interesting in the nerdiest way.
— James Seyffart (@JSeyff) December 5, 2023
BlackRock was among the first institutional giants to file for a spot Bitcoin ETF in July.
Go here to Read this Fast! BlackRock received $100K seed funds for Bitcoin ETF — SEC filing
Originally appeared here:
BlackRock received $100K seed funds for Bitcoin ETF — SEC filing
