BlackRock Rumored to Funnel $2 Billion into Bitcoin Spot ETF
In a recent statement by VanEck’s Matthew Sigel, a bombshell revelation surfaced about BlackRock potentially securing a staggering $2 billion from existing Bitcoin holders, earmarked for spot Bitcoin ETFs in the opening week. If validated, this significant influx of capital would shatter all records for first-day and first-week volumes and assets under management (AUM) for an Exchange-Traded Fund (ETF).
Sigel took to Twitter to relay this intriguing possibility, citing insider information: “I heard from a pretty well-placed source that BlackRock has more than $2 billion lined up in week one in new incremental flows from existing Bitcoin holders who are adding to positions. I can’t vouch for that, but you know, that’s what everyone is doing.”
Full quote: “I heard from a pretty well placed source that Blackrock has more than $2 billion lined up in week one in new incremental flows from existing Bitcoin holders who are adding to positions — I can’t vouch for that. But you know, that’s what everyone is doing. Just making…
— Tim Copeland (@Timccopeland) January 5, 2024
This potential monumental move highlights a concerted effort by existing Bitcoin investors to shift their holdings into spot Bitcoin ETFs, indicating a growing interest in such investment vehicles. Sigel further elaborated on the widespread effort to seek out individuals capable of making substantial investments in these products, hinting at a broader trend in the market.
The impact of this purported $2 billion inflow within the initial week would not just exceed estimations but completely surpass past benchmarks. Sigel explained, “Our estimates… if that $2 billion happened in week one, you know, that would blow away our estimates. We’re at $2.5 billion in the first quarter of trading.”
Sigel’s estimation methodology involves analyzing historical flows into the first gold ETF and adjusting the data based on the US money supply. This analysis points to a massive $40 billion market opportunity over the span of two years, underlining the potential magnitude of BlackRock’s alleged move.
However, Sigel also clarified that his usage of the term “rotate” in the original tweet was based on his understanding from the live conversation and should not be taken as an official statement.
If substantiated, this revelation could mark a pivotal moment in the evolution of Bitcoin investment strategies, potentially setting a new trajectory for the cryptocurrency within the financial mainstream. The prospect of established investment giants like BlackRock entering the space with such substantial capital speaks volumes about the maturing perception of Bitcoin as a legitimate asset class.
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