Musk announces "seed funding" for BlackRock spot ETF, Bitcoin (BTC), DOGE surge higher

On Wednesday (December 6) in the Asian market, Bitcoin fell slightly to $43,860 and successfully exceeded the $44,000 mark in the morning. BlackRock, the world's largest asset management company with $9 trillion under management, disclosed that certain sub-investors agreed to subscribe for shares of its spot Bitcoin ETF fund for $100,000. This news further boosted the approval of the U.S. Securities and Exchange Commission (SEC). Possibility of clearance. X.AI, Elon Musk's artificial intelligence company, raised $1 billion through a stock issuance. Dogecoin surged more than 5% on the news as the platform was seen as having the potential to allow Dogecoin payments.

BlackRock reveals it has received “seed funding”

BlackRock disclosed in a new filing with the U.S. Securities and Exchange Commission that it has secured $100,000 in “seed funding” for its proposed Bitcoin spot ETF. "Seed capital investors have agreed to purchase $100,000 of stock on October 27, 2023 and deliver 4,000 shares (seed shares) at $25 per share on October 27, 2023," the filing said.

Seed capital represents the initial capital that is allowed to fund the underlying creation units of an ETF so that the shares can be issued and traded on the public market.

BlackRock’s proposed iShares Bitcoin Trust would invest in Bitcoin rather than futures linked to the leading cryptocurrency and is one of 13 applications awaiting regulatory approval. The market generally expects that the US Securities Regulatory Commission will approve one or more spot ETFs in early 2024. Bloomberg analysts believe that the probability of approval in January is 90%. #BTC