First Mover Americas: BlackRock Received $100K Seed Funding for Its Spot BTC ETF

The latest price moves in crypto markets in context for Dec. 5, 2023.

AccessTimeIconDec 5, 2023 at 1:01 p.m. UTC
Updated Dec 5, 2023 at 4:02 p.m. UTC
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This article originally appeared in First Mover, CoinDesk’s daily newsletter putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.

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BlackRock (BLK) received $100,000 as “seed capital” for its proposed spot bitcoin (BTC) exchange-traded fund, the investment giant disclosed in a fresh application with the U.S. Securities and Exchange Commission (SEC). “The seed capital investor agreed to purchase $100,000 in shares on October 27, 2023, and on October 27, 2023 took delivery of 4,000 shares at a per-share price of $25.00 (the “seed shares”),” the filing said. Seed capital represents the initial funding that allows an ETF to fund the creation units underlying the ETF so that shares can be offered and traded in the open market.

Business intelligence company MicroStrategy (MSTR) was sitting on a more than $2 billion profit on its massive bitcoin (BTC) holdings on Monday following the cryptocurrency’s rally above $42,000. Led by then CEO and now Executive Chairman Michael Saylor, MicroStrategy began purchasing bitcoin in August 2020. The company's most recent purchases took place last month and as of Nov. 30, it held 174,530 bitcoin acquired for $5.28 billion, or an average price of $30,252 each. With bitcoin at $42,000, the value of MSTR's holdings rose to roughly $7.3 billion. The price at press time had pulled back to $41,700.

The president of El Salvador took to the X platform early Monday morning to note his country's bitcoin (BTC) investment was now profitable by more than $3 million following the cryptocurrency's rally. "We have no intention of selling; that has never been our objective," he wrote. "We are fully aware that the price will continue to fluctuate in the future, this doesn’t affect our long-term strategy." Based on public statements from Nayib Bukele, CoinDesk three weeks ago calculated that the country at that time owned roughly 2,744 bitcoins at an average price a bit lower than $42,000 and was sitting on a loss of about $16 million.

Chart of the Day

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  • The chart shows changes in short-term and long-term bitcoin call-put skews over the past five weeks. The metric measures demand for calls relative to puts.
  • Skews have come off from multimonth highs reached in early November, failing to confirm bitcoin's rise above $42,000 on Monday.
  • Perhaps sophisticated traders are anticipating a bull breather.
  • A call option offers protection against bullish moves, while a put offers insurance against price slides.
  • Source: Amberdata

- Omkar Godbole

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Edited by Sheldon Reback.

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Lyllah Ledesma

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.


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