In a recent development, attorney Scott Johnsson has brought attention to some noteworthy aspects of BlackRock's S-1 amendment for its Bitcoin Spot ETF.
According to the legal expert, the application includes the following key points:
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CUSIP Preparation: BlackRock has acquired a CUSIP (Committee on Uniform Securities Identification Procedures) number in preparation for the ETF's launch.
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Potential Early Funding: Indications suggest that BlackRock may seek cash funding this month, earlier than initially anticipated.
Bloomberg ETF analyst Eric Balchunas also shared his insights on this matter:
"BlackRock has stated in its latest Bitcoin ETF regulation that they intend to fund the ETF in October. I won't add extensive commentary, but it's noteworthy because it presents new information that was not originally included in the initial filing, especially given that it pertains to BlackRock."
Funding an ETF typically involves an initial capital infusion from a bank or brokerage firm. This capital is used to acquire various underlying assets (in this case, Bitcoin) in exchange for ETF shares. These assets can then be traded on the open market from the ETF's launch.
It's important to note that the funding process typically does not require a substantial amount of capital. Sufficient funds are necessary solely for the ETF's initial launch. Therefore, Balchunas advises against interpreting this as an indication that "BlackRock is acquiring a large amount of Bitcoin (BTC)." Instead, he suggests viewing it as another step in the process of bringing the ETF to market.
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