BlackRock has announced that it will begin preparing a seed ETF for a Bitcoin spot ETF this month.

On October 24th, Bloomberg's ETF analyst Eric Balchunas stated on social media that BlackRock had announced in a recent amendment to its spot Bitcoin ETF that it will inject seed ETF for its ETF in October. As one of the contents of the amendment, this is noteworthy. Eric Balchunas explained that seed ETF refers to initial funding provided by banks or broker-dealers (usually) to purchase some assets (in this case, Bitcoin) in exchange for ETF shares that can be traded on the public market on the first day. The seed funding is usually not much, just enough to run the ETF. Therefore, it should not be interpreted as "BlackRock is buying a large amount of Bitcoin", but more importantly, by doing so and disclosing this fact, it indicates further progress in the launch process. As previously reported by BlockBeats, BlackRock's Bitcoin spot ETF was listed on the Depository Trust & Clearing Corporation (DTCC) on the same day.