Bloomberg analyst Eric Balchunas provided an update on when the SEC approval notice is expected to arrive. Citing multiple sources, he explained that the SEC is preparing all issuers for a possible January 11 launch.
VanEck’s head of research, Matthew Sigel, recently suggested that the Bitcoin ETF from the world’s largest asset manager, BlackRock, could see unprecedented capital inflows upon its launch. This comes as an approval notice from the Securities and Exchange Commission (SEC) is imminent.
BlackRock Bitcoin ETF Could Receive over $2 Billion in Inflows
Sigel mentioned in a Live Update on X that he heard from a reliable source that BlackRock “raised over $2 billion in the first week.” This investment capital is expected to come from current Bitcoin holders looking to increase their exposure to the flagship cryptocurrency.
Sigel highlighted how important it could be if BlackRock’s ETF actually saw inflows of $2 billion in its first week of trading, saying that it would “destroy” his original forecasts. He estimates that Bitcoin ETFs could see $2.5 billion in inflows in the first quarter of trading, and now believes the market could grow to $40 billion in the next two years.
Not Unusual for BlackRock
When asked about the possibility of BlackRock experiencing this major influx, 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 investing large sums of money in new ETFs on the first day of trading so that this registers volume for them.
Balchunas further added that a $2 billion inflow into the BlackRock Bitcoin ETF would break all first-day and first-week volume records for an ETF. Interestingly, BlackRock already holds the record for the most successful ETF launch by size of first day inflows.
BlackRock Spot Bitcoin ETF
The world’s largest asset manager also dominates the list of the top 10 most successful ETF launches. However, Balchunas clarified that these inflows were mainly deployed cash and not organic, as they were already available before the ETF’s launch. He also mentioned that he had a second source who confirmed Sigel’s claims that BlackRock was preparing for a big first day.
The announcement that BlackRock has potentially raised over $2 billion in the first week for its Bitcoin spot ETF is significant and suggests significant interest from institutional investors. BlackRock, as the world’s largest asset manager, has a huge network and resources to mobilize these capital flows.
Historical data shows that new financial products that provide convenient, regulated access to previously difficult-to-access asset classes often attract significant funds. For example, the SPDR Gold Trust (GLD), the first US gold ETF, raised more than $1 billion in the first five trading days after its launch in 2004.
Given the growing adoption of Bitcoin as an asset class and growing interest in cryptocurrencies among institutional investors, the BlackRock Bitcoin ETF could see similar inflows, perhaps even at a higher rate than traditional ETFs. The SEC’s approval of a Bitcoin ETF could spark a wave of new investment in the cryptocurrency market by opening the door to a broader range of investors who had previously been sidelined due to regulatory concerns or lack of access.
Overall, it is quite realistic that the BlackRock Bitcoin ETF could receive billions of dollars in inflows in the first week, and that number will continue to rise over time, particularly as ETF adoption increases and Bitcoin continues to be recognized. as a valuable asset class.
By Audy Castaneda
