Matthew Sigel, VanEck’s head of research, recently hinted that the Discover Bitcoin ETF of the the world’s asset manager, BlackRock, could see record inflows upon launch. This comes as an approval order from the Securities and Exchange Commission (SEC) seems imminent.
BlackRock’s Bitcoin ETF could see inflows of more than $2 billion
Sigel mentioned on an
This investment capital It is said to come from existing Bitcoin holders looking to increase their exposure to Bitcoin flagship cryptocurrency.
He quickly added that he could not be 100% certain of this information. However, it is a possibility, considering those issuers would be looking for investors who can inject huge amounts of money into their respective ETFs.
Sigel further emphasized how significant it could be if BlacRock’s ETF indeed sees $2 billion in inflows in its first week of trading. initial projections. They estimate that the Discover Bitcoin ETFs could see inflows of $2.5 billion 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
In response to the possibility of BlackRock seeing this significant amount of inflows, Bloomberg analyst Eric Balchunas noted that such an event is not unusual for the world’s largest asset manager. According to him, BlackRock is known for putting in and putting a lot of money into new ETFs on the first day of trading. That way it is registered as a volume for them.
Balchunas noted this further Bitcoin ETF from BlackRock, with $2 billion inflows, would break all first-day and full-week volume records for an ETF. Interestingly enough, BlackRock already holds the record for the most successful ETF launch, as measured by the amount of inflows recorded on day one.
The world’s asset manager further dominates the top 10 most successful ETF launches. However, Balchunas clarified that these inflows were mainly cash and not organic sources as these were already available before the launch of the ETF. He also said he got a second source who confirmed Sigel’s claims that BlackRock has a big day ahead.
Meanwhile, the Bloomberg analyst provided an update on when the SEC’s clearance order would likely come. He quotes several sources declared that the SEC list all issuers for a possible launch on January 11.
Featured image of Decrypt, chart from Tradingview.com
Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.