Matthew Sigel, the Head of Research at VanEck, has hinted that BlackRock’s Spot Bitcoin ETF could see a record-breaking amount of inflows upon its launch. This comes as an approval order by the Securities and Exchange Commission (SEC) appears to be imminent.
Sigel, speaking on an X (formerly Twitter) space hosted by The Block, mentioned that he had heard from a reliable source that BlackRock has more than $2 billion lined up for the first week. This investment capital is expected to come from existing Bitcoin holders looking to increase their exposure to the flagship cryptocurrency. However, Sigel was quick to add that he couldn’t be 100% certain of this information.
He further highlighted the significance of BlackRock’s ETF seeing $2 billion of inflows in the first week of trading, stating 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, and believe the market could grow to $40 billion in the next two years.
Bloomberg analyst Eric Balchunas commented on the possibility of BlackRock seeing this significant amount of inflows, noting that such an occurrence isn’t unusual for the world’s largest asset manager. BlackRock is known for lining up and injecting big cash into new ETFs on the first day of trading. 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. BlackRock already holds the record for the most successful ETF launch going by the amount of inflows recorded on day one.
Balchunas also 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, Balchunas 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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| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Eric Balchunas, Matthew Sigel |
| Companies | BlackRock, VanEck, The Block, Securities and Exchange Commission, Bloomberg |
| Currencies | Bitcoin |
| Securities | None |
