BlackRock’s $10 Million BTC Purchase Set For Today As Bloomberg Expert Predicts Imminent SEC Approva

Bitcoin ETF approval could be on the horizon as BlackRock plans a major BTC purchase and experts say the SEC is cornered into allowing regulated crypto funds. Image by Woraphon, Adobe Stock.
Asset management firm BlackRock is set to purchase $10 million worth of Bitcoin on Friday, fueling speculation that the Securities and Exchange Commission (SEC) may soon approve Bitcoin spot exchange-traded funds (ETFs).
During a private webinar with CryptoQuant on Thursday, Bloomberg Analyst James Seyffart predicted the SEC will likely approve several Bitcoin spot ETF applications in the coming days, indicating that the SEC has run out of reasons to deny Bitcoin ETFs after a recent court ruling against the regulatory agency.
“The SEC is either going to have to come up with a new reason. Because you’ve been denying these ETFs for all these reasons. Courts said those reasons don’t matter anymore, and now you’re coming out with new reasons,” Seyffart said. “I don’t think that’s an option for the SEC. The other option is to get them to withdraw, in which case, again, I don’t think that’s likely because the SEC is backed into a corner here. I think they have to approve.”BlackRock revealed its plans for the $10 million Bitcoin buy in an amendment filing for its proposed spot ETF. The purchase comes from the proceeds of the fund’s seed capital investments back in October. While the seed purchase doesn’t guarantee an ETF launch, Seyffart said it signals BlackRock’s confidence in imminent SEC approval. Rival firm Bitwise has also said last week it could seed its proposed Bitcoin ETF with up to $200 million.

Bitcoin ETF Applications Piling Up

The SEC has rejected over a dozen Bitcoin ETF applications so far but is now cornered into approving some, according to Seyffart, and he expects official SEC approval between January 8 and January 10. Bitcoin ETFs would allow mainstream investors easy exposure to Bitcoin through brokerage accounts for the first time. The SEC has previously cited Bitcoin market manipulation and lack of regulation as reasons for rejecting applications.
At least six companies have Bitcoin ETF applications awaiting SEC decisions. Approvals would expose the $850 billion Bitcoin market to millions of retail and institutional investors.
As the financial community awaits the SEC’s verdict, the implications of these decisions will undoubtedly shape the future trajectory of cryptocurrency investment.