5.6 C
Sunday, January 7, 2024

Bitcoin Spot ETF: VanEck’s Head Of Research Says BlackRock Has $2 Billion In Investments Lined Up

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. 

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. 

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

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott’s dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Kaylie Pferten
Kaylie Pferten
A pilot of submersible crafts in a former life, now married to my husband David and writing about investment advice.

Related Articles


Please enter your comment!
Please enter your name here

Latest Articles