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BlackRock Receives $100K Seed Capital as Crypto Gains Traction with Major Investors

Investment behemoth BlackRock revealed in a recent SEC filing that it received $100,000 as seed capital for its proposed spot Bitcoin ETF.

BlackRock receives $100k seed capital on Spot Bitcoin ETF
Credit: Unsplash

WASHINGTON, D.C. – According to the SEC filing, an investor agreed to purchase $100,000 in shares on October 27, 2023, receiving 4,000 shares at a per-share price of $25.00. This seed capital is crucial as it represents the initial funding needed to support the creation units underlying the ETF, allowing shares to be traded in the open market. BlackRock's move into Bitcoin ETFs is a significant indicator of the asset manager's confidence in the potential of cryptocurrencies.


MicroStrategy's Profit Surge on Bitcoin Investment


In related news, business intelligence firm MicroStrategy (MSTR) reported a staggering profit of over $2 billion on its bitcoin holdings. The surge in profit is attributed to the recent rally in bitcoin prices, surpassing $42,000. Under the leadership of Michael Saylor, now Executive Chairman, MicroStrategy began investing in Bitcoin in August 2020.


As of November 30, the company held 174,530 BTC, acquired at an average price of $30,252 each. The rise in bitcoin’s value has increased MicroStrategy's holdings to approximately $7.3 billion.


El Salvador’s Profitable Bitcoin Investment


The president of El Salvador also highlighted the nation's profitable bitcoin investment following the cryptocurrency's rally. El Salvador, which made bitcoin legal tender, owns about 2,744 BTC, and despite the market's volatility, has no plans to sell, focusing on a long-term strategy. This stance demonstrates a growing trend of national-level investment in cryptocurrencies.


The involvement of major financial players like BlackRock and MicroStrategy, along with nation-states like El Salvador, in the cryptocurrency market, particularly bitcoin, signifies a maturing market with increased mainstream acceptance.

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