BlackRock (BLK), an asset manager, made headlines earlier this week after a prospectus for its spot Bitcoin ETF application revealed it had raised $100,000 as seed capital for the fund.

The market’s anticipation that U.S. officials might approve one or several spot bitcoin ETF applications soon has played a major role in the crypto’s 60% gain since October 1. Market watchers are on alert for any confirmation.

How big a deal is BlackRock’s announcement this week? Bloomberg Intelligence ETF Analyst James Seyffart said it was a good step, but just that.

Seyffart stated, “I suspect that this is for operational purposes as well as setting up things.” He added that “it’s significant” because it shows the team is doing all they can to launch, but he didn’t think much more of it than that.

He reminded that it’s not uncommon for ETF issuers raise seed capital before launching new products. Seyffart noted that $100,000 is a small amount compared to the normal range of a few million dollars.

Seyffart said that, while the investment in the potential fund may not be as significant as others thought, it is still important because it shows BlackRock’s commitment to the fund.

BlackRock’s spot bitcoin ETF application is one of 13 applications that the SEC has received.

Seyffart, along with Eric Balchunas, believe that there is a 90% likelihood of approval on Jan. 10, 2024.

Stephen Alpher edited the book.