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⚡BlackRock Secures $100K Seed Investment 💹

Croxroad

06 Dec 2023 — 3 min read

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Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

💰 BlackRock Celebrates

BlackRock, the investment giant, recently shared in a filing with the U.S. Securities and Exchange Commission (SEC) that it secured $100,000 as "seed capital" for its upcoming bitcoin exchange-traded fund (ETF). This seed capital, received from an undisclosed investor, was used to purchase 4,000 shares of the proposed ETF at a per-share price of $25.00 on October 27, 2023.

In the context of ETFs, seed capital plays a crucial role as it represents the initial funding necessary for the creation of units that underlie the ETF. This enables the ETF to issue and trade shares in the open market. BlackRock's specific ETF, named "iShares Bitcoin Trust," stands out because it plans to invest directly in bitcoin rather than opting for futures tied to the cryptocurrency. Currently, the proposed ETF is among the 13 applications awaiting regulatory approval.

There's growing anticipation that the SEC will give the green light to one or more spot ETFs early next year. Bloomberg analysts estimate a high probability of approval, placing it at 90% for January. This suggests a positive outlook for the acceptance and expansion of bitcoin-related investment products in the financial market.

👀 Bitcoin Breaks Through $44K Mark

The price of Bitcoin (BTC) just hit the $44,000 mark, and it seems like the fear of missing out (FOMO) is still pushing the cryptocurrency market higher. This recent move has taken BTC above the middle point of a supply zone, which ranges from $40,517 to $46,972 on the weekly chart. Typically, when there's a break and close above this midline in a supply zone, it signals that the primary upward trend is likely to continue. So, it's something investors are keeping a close eye on.

Adding to the positive signs, the Relative Strength Index (RSI) is still pointing upwards, indicating that the momentum is on the rise. If buying pressure remains strong, Bitcoin could potentially break through this supply zone, turning it into a bullish signal. If that happens, it might pave the way for Bitcoin to target the $50,000 mark, representing a 10% increase from the current levels.

However, it's essential to be cautious. Despite the positive indicators, Bitcoin is already considered significantly overbought. So, investors shouldn't be too surprised if there's a pullback. Some experts are even considering the possibility of a correction, with a potential drop to the $30,000 psychological level. This evaluation comes amid ongoing anticipation and excitement in the market regarding the approval of spot BTC exchange-traded funds (ETFs).

🔫 Range Trading

Range trading is a hands-on strategy where an investor picks a specific price range to buy or sell cryptocurrency within a short timeframe. Let's say Bitcoin (BTC) is currently priced at $35,000, and you predict it will go up to $40,000 in the next few weeks. In range trading, you'd set your sights on a range, like buying when it's at $35,000 and selling when it hits $40,000.

So, you might start by purchasing BTC at $35,000 and then sell it once it climbs to $40,000. You'd repeat this process until you believe Bitcoin is no longer sticking within this particular price range. Essentially, range trading involves making profits by taking advantage of the expected fluctuations in the cryptocurrency's value within a defined price range. It's a way for investors to capitalise on short-term price movements and adapt their strategy based on the current market conditions.