Bitcoin Spot ETF: VanEck’s Head Of Research Says BlackRock Has $2 Billion In Investments Lined Up
January 06 2024 - 12:00PM
NEWSBTC
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.” Related Reading: Shiba Inu’s Shibarium Hit Major
Milestone Amid Rapid Network Recovery 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. BTC price struggles to reclaim $44,000 |
Source: BTCUSD on Tradingview.com 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. Related Reading: New Report
Predicts When The XRP Price Will Cross $1.56 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. Featured image from Decrypt, chart from
Tradingview.com
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