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“Bitwise Surpasses BlackRock With Bitwise $200 Million Seed Fund Spot Bitcoin ETF Approval Nears”
As the deadline for potential approval of Spot Bitcoin ETFs inches closer, Bitwise is making headlines by potentially outpacing the world’s largest asset manager, BlackRock, in terms of seed funds for their respective ETFs. In its latest amendment to the S-1 filing with the U.S. Securities and Exchange Commission (SEC), Bitwise reveals a significant stride in attracting investor interest, with a whopping Bitwise $200 million seed fund set to propel its ETF upon launch.
Bitwise’s Strategic Advantage:
Bitwise’s $200 million seed fund is impressive, as outlined in the amended S-1 filing, stands in stark contrast to BlackRock’s initial seed fund of $10 million. Analysts, including Bloomberg’s Eric Balchunas, recognize this as a potential game-changer in the early days of the ETF race.
Bitwise S-1 has been filed and it looks like someone (I wonder who) is going to seed $BITB with $200m, which blows away BlackRock's $10m (that we know of). That's gonna be huge help in early days of race. No AP named but prob forthcoming. pic.twitter.com/hQ7uW9Occo
— Eric Balchunas (@EricBalchunas) December 29, 2023
With the SEC expected to simultaneously approve pending ETF applications, Bitwise could gain a crucial edge in meeting client demands by having the capacity to create $200 million worth of shares with Bitwise $200 Million Seed Fund.
Authorized Participant Yet to be Named:
While Bitwise has not yet disclosed its authorised participant (AP), the intermediary responsible for creating and redeeming ETF shares, other issuers like BlackRock, Invesco Galaxy, and Wisdom Tree have already identified their APs in recent S-1 filings with the SEC. Bitwise’s move comes nearly two weeks after a spot Bitcoin ETF listing linked to the asset manager surfaced on the Depository Trust & Clearing Corporation (DTCC), a strong indicator that the product is nearing market introduction.
Bullish Predictions and Spot ETF Listing:
Bitwise, known for its bullish stance on Bitcoin, has updated its application amidst growing anticipation for the approval of Spot Bitcoin ETFs. The asset manager predicts Bitcoin’s price to soar, potentially reaching $80,000 by 2024. This positive outlook aligns with the listing of a spot Bitcoin ETF connected to Bitwise on the DTCC, a significant step toward market availability.
Confidence in Bitcoin’s Future: I
n a CNBC interview on December 6, Bitwise’s Chief Investment Officer, Matt Hougan, reiterated the company’s confidence in Bitcoin’s future. Anticipating short-term volatility following a notable surge, Hougan expects Bitcoin to achieve new all-time highs within the next six to 12 months.
As the crypto community eagerly awaits the SEC’s decision on Spot Bitcoin ETFs, Bitwise’s strategic moves and substantial Bitwise $200 million seed fund position it as a key player in the evolving landscape of cryptocurrency exchange-traded funds.
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