BlackRock Delays $10 Million Bitcoin Purchase: New Date Revealed!
In a move that has taken the crypto market by surprise, BlackRock, the world's largest asset manager, has postponed its planned $10 million Bitcoin purchase originally scheduled for January 3. The postponement comes amid growing anticipation of the potential approval of a Bitcoin ETF by the US Securities and Exchange Commission (SEC). Let's delve deeper into this delay and its implications for the crypto market!
BlackRock's Schedule Adjustment for Bitcoin ETFs
BlackRock, which has been preparing for the launch of a Bitcoin ETF, initially purchased Seed Shares on October 27, 2023. This purchase involved 4,000 shares at a price per share of $25, totaling $100,000. These shares were then exchanged for cash in January, and BlackRock went on to purchase Seed Creation Baskets consisting of 400,000 shares at the same price. However, recent reports confirm that BlackRock has rescheduled the seeding process for the highly anticipated Bitcoin ETF. The initial $10 million seeding that was scheduled for January 3 is now planned for January 5. BlackRock's decision to adjust this timeline should come as no surprise, given that the regulatory and compliance approval process often requires careful consideration.
Chances of Bitcoin ETF Approval Increase at Polymarket
Chances of Bitcoin ETF approval jumped 50% compared to December. Source: Polymarket
Data from prediction market Polymarket has sent a wave of excitement through the crypto community, as it shows a significant increase in trader confidence in the approval of a Bitcoin ETF by the US SEC before January 15. The contract price on the platform has jumped to 89 cents, signaling an 89% probability that the SEC will approve the much-anticipated Bitcoin ETF. Polymarket, a decentralized prediction market platform, allows users to speculate on the outcome of various events by trading virtual stocks. In this case, traders have staked an impressive amount of $437,394 on the SEC's approval of the Bitcoin Spot ETF before the mid-January deadline. The rise in contract value and increased trader confidence reflect the growing optimism about the chances of Bitcoin ETFs getting regulatory approval.
Impact of the Delay on Bitcoin Price
BlackRock's delay in purchasing Bitcoin comes at a critical time, with the price of Bitcoin having reached $45,200, marking a significant 7% increase in the 24 hours leading up to the index fund's possible approval. This price increase indicates a positive market response to the potential approval of the Bitcoin ETF and investors' anticipation of BlackRock's next move. This rise in Bitcoin price also reflects the optimistic market sentiment towards crypto adoption by institutional investors. BlackRock's decision to delay purchases may have caused temporary disappointment, but the long-term outlook for Bitcoin and the crypto market as a whole remains positive.
Conclusion
The delay in BlackRock's purchase of Bitcoin highlights the complex dynamics within the crypto market, where major decisions by institutional players can have a significant impact. Despite the delay, market anticipation of the Bitcoin ETF approval and its potential impact on crypto adoption by institutional investors remains high. Going forward, BlackRock's moves and the SEC's decision will continue to be a key focus for crypto market participants.
