Bitwise, a leading crypto asset manager, has received a strong indication of interest from an anonymous buyer who plans to invest up to $200 million in its spot bitcoin ETF, according to a filing with the SEC on Friday. The spot bitcoin ETF, which will trade under the ticker BITB, is one of the several proposals awaiting approval from the U.S. regulator.
The $200 million investment would significantly boost Bitwise, surpassing the $10 million seed money that Blackrock, the world’s largest asset manager, announced for its own spot bitcoin ETF last week. Blackrock’s ETF, which will trade under the ticker BTFD, is expected to launch on Jan. 3, 2024.
Bloomberg ETF analyst Eric Balchunas commented on Bitwise’s filing on social media platform X, saying:
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.
However, the asset manager warned that the potential buyer’s interest is not a binding commitment, and they could change their mind or purchase a different amount of shares.
Bitwise’s Bullish Outlook On Bitcoin and ETFs
Bitwise is optimistic about the future of Bitcoin and the ETF industry, as revealed in its 10 crypto predictions for 2024 earlier this month. The firm expects Bitcoin to trade above $80,000 by the end of 2024, driven by institutional adoption, regulatory clarity, and innovation.
Bitwise also believes that the SEC will approve spot bitcoin ETFs in 2024 and that they will be the most successful ETF launch of all time. Bitwise estimates that spot bitcoin ETFs will capture 1% of the $7.2 trillion U.S. ETF market or $72 billion in assets under management (AUM).
Bitwise is not the only firm vying for the first spot in Bitcoin ETF approval in the U.S. Other applicants include VanEck, Valkyrie, WisdomTree, NYDIG, and Galaxy Digital. The SEC has delayed its decision on several of these proposals, citing concerns over market manipulation, investor protection, and custody issues. The SEC has to decide on most ETFs in early January 2024.
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