BlackRockβs Bitcoin ETF Could Attract Over $2 Billion in Inflows
The Head of Research at VanEck, Matthew Sigel, recently suggested that BlackRock’s Spot Bitcoin ETF could experience a surge in inflows upon its launch. Sigel revealed during a media platform event that he heard from a reliable source that BlackRock already has more than $2 billion lined up for the first week of trading. This investment capital is expected to come from existing Bitcoin holders who want to increase their exposure to the flagship cryptocurrency.
While Sigel couldn’t confirm this information with certainty, it is plausible given that issuers typically seek investors who can inject substantial amounts into their ETFs. If BlackRock’s ETF does receive $2 billion of inflows in the first week, it would exceed their initial projections. They estimate that the Spot Bitcoin ETFs could attract $2.5 billion in the first quarter and grow to $40 billion within two years.
BlackRock’s Track Record
Analyst Eric Balchunas from Bloomberg noted that it wouldn’t be unusual for BlackRock, as the world’s largest asset manager, to see such significant inflows. He explained that BlackRock typically lines up and invests large amounts of cash on the first day of trading for new ETFs, which registers as volume for them. In fact, BlackRock already holds the record for the most successful ETF launch in terms of inflows on day one.
Balchunas clarified that while BlackRock dominates the top 10 list of successful ETF launches, those inflows mainly consist of lined-up cash rather than organic investments available before the launch. However, he confirmed Sigel’s claims about BlackRock having a substantial first-day volume based on information from a second source.
Expected Approval Date
According to Balchunas, the Securities and Exchange Commission (SEC) is preparing to issue an approval order on January 11, potentially paving the way for all issuers to launch their ETFs. This aligns with previous reports suggesting that the SEC is actively engaging with exchanges for approval.
Hot Take: BlackRock’s Bitcoin ETF Could Attract Billions in Inflows
If BlackRock’s Spot Bitcoin ETF does receive over $2 billion in inflows during its first week, it would surpass initial projections and set a new record for first-day and week volume. This highlights the growing interest among investors to gain exposure to Bitcoin through regulated investment vehicles. The approval of BlackRock’s ETF could signal a significant step forward in the mainstream adoption of cryptocurrencies.
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