VanEck’s Head of Research, Matthew Sigel, recently hinted that the Spot Bitcoin ETF of the world’s asset manager, BlackRock, could see a record-breaking amount of inflows upon launch. This comes as an approval order by the Securities and Exchange Commission (SEC) looks imminent.
BlackRock’s Bitcoin ETF Could See Inflows Of Over $2 Billion
Sigel mentioned on an X (formerly Twitter) space hosted by the media platform, The Block, that he heard from a reliable source that BlackRock has “more than $2 billion lined up in week one.”
This investment capital is said to be coming from existing Bitcoin holders who are looking to increase their exposure to the flagship cryptocurrency.
He quickly added that he couldn’t be 100% certain of this information. However, it is a possibility, considering that issuers would be looking to get investors that can inject huge sums into their respective ETFs.
Sigel went on to highlight how significant it could be if BlacRock’s ETF indeed saw $2 billion of inflows in the first week of trading, saying that it would “blow away” their initial projections. They estimate that the Spot Bitcoin ETFs could see $2.5 billion of inflows in the first quarter of trading. Meanwhile, they believe the market could grow to $40 billion in the next two years.
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Not Out Of Place For BlackRock
Commenting on the possibility of BlackRock seeing this significant amount of inflows, Bloomberg analyst Eric Balchunas noted that such an occurrence isn’t unusual for the world’s largest asset manager. According to him, BlackRock is known for lining up and injecting big cash into new ETFs on the first day of trading. That way, it registers as volume for them.
Balchunas further noted that BlackRock’s Bitcoin ETF, seeing $2 billion of inflows, would shatter all records relating to first-day and week volume for an ETF. Interestingly, BlackRock already holds the record for the most successful ETF launch going by the amount of inflows recorded on day one.
The world’s asset manager further dominates the top 10 list of most successful ETF launches. Balchunas, however, clarified that those inflows were mainly lined up cash and not organic, as they were readily available before the ETF launched. He also mentioned that he got a second source to confirm Sigel’s claims that BlackRock has a big day one lined up.
Meanwhile, the Bloomberg analyst provided an update on when the approval order from the SEC was likely to come. Citing multiple sources, he stated that the SEC is lining up all issuers for a potential launch on January 11.
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While things look all but set for the U.S. Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETF, investment management firm Blackrock is apparently making moves behind the scenes in preparation for ETF trading. In the recent weeks, Blackrock has been one of the most aggressive applicants to have met the SEC’s requirements as well holding discussions on the potential approval.
Also Read: Bitcoin ETF Launch On January 11?: Bloomberg Analyst Hints
Blackrock Has $2 Billion Worth BTC Ready For Existing Holders
According to Matthew Sigel, the Head of Digital Assets Research at Van Eck, reportedly quoted a source as saying that the firm has $2 billion of capital ready to be routed to its ETF from existing Bitcoin holders who would like to rotate into the spot Bitcoin ETFs in the first week of trading. This could be a temporary resort from the firm to get things started in the initial trading sessions, after which a long term strategy to acquire BTC based on the demand its iShares spot Bitcoin ETF attracts.
This comes amid widespread expectations around the spot Bitcoin ETF approval around January 9 or 10, 2024, while Bloomberg analysts revealed that the SEC officials are getting all the applicants ready for a Bitcoin ETF launch on January 11, 2024. The US SEC faces a deadline on January 10, 2024, before which it has to deliver a decision on the approval of the Ark 21Shares Bitcoin ETF.
Paperwork All But Done
Earlier, BlackRock’s iShares, Valkyrie Bitcoin Fund, Bitwise, Grayscale, Hashdex, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Franklin Templeton and ARK 21Shares have made submissions on 19b-4 amendments for the ETF applications. This means the paperwork has reached the final stages before the SEC officially gives the nod for the first ever spot Bitcoin ETF in the United States.
Also Read: Bitcoin Halving Nears 100 Day Countdown; BTC Price Rally To Begin?
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