According to Cointelegraph: BlackRock, the world's largest asset manager, has reportedly received $100,000 in seed funding from an undisclosed investor for its spot Bitcoin exchange-traded fund (ETF) in October 2023, as per its latest filing with the United States Securities and Exchange Commission (SEC).
The SEC filing disclosed that on Oct. 27, 2023, the investor agreed to acquire 4,000 shares at $25.00 per share, which equates to a total investment of $100,000. The investor's action concerning the "Seed Creation Baskets" is defined as a "statutory underwriter."
The filing brings to light specific aspects of BlackRock's plan to cover the sponsor's fee. Namely, it plans to temporarily loan Bitcoin or cash from the trade credit lender. This allows BlackRock to leverage their fees through a loan rather than by selling BTC, minimizing any potential impact on Bitcoin's price.
The payment of trade credits will take place on the business day following the execution date, incurring a financing fee equivalent to 11% plus the federal funds target rate divided by 365.
In July, BlackRock was one of the first major institutions to file for a spot Bitcoin ETF. Its application is one among 13 still waiting for the SEC's decision. Despite the SEC's previous rejections of spot BTC ETF applications, industry experts predict the SEC could approve the US's first spot BTC ETF by early 2024.
