Blackrock, the world’s largest asset manager, has reportedly lined up more than $2 billion for its spot bitcoin exchange-traded fund (ETF) within days of launch. Vaneck’s head of digital assets research and a Bloomberg ETF analyst have independently verified with their sources that Blackrock has a “big day one” capital lined up for its spot bitcoin ETF.
Blackrock Prepares for ‘Big Day One’ of Spot Bitcoin ETF Launch
The world’s largest asset manager has reportedly lined up $2 billion in capital for its upcoming spot bitcoin exchange-traded fund (ETF) launch, according to Vaneck’s head of digital assets research, Matthew Sigel. Vaneck is among the asset managers that have filed to launch a spot bitcoin ETF with the U.S. Securities and Exchange Commission (SEC).
Blackrock, Vaneck, and nine other spot bitcoin ETF applicants are waiting for the green light from the SEC to launch spot bitcoin ETFs. Sigel revealed during an X Space discussion hosted by The Block on Friday:
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.
VanEck's Matthew Sigel just said he's heard from a well placed source that BlackRock has $2 billion of capital lined up from existing bitcoin holders that want to rotate into spot bitcoin ETFs in week one
https://t.co/rP23TfO7iT — Tim Copeland (@Timccopeland) January 5, 2024
However, Sigel noted: “I can’t vouch for that. But you know, that’s what everyone is doing. Just making phone calls and trying to find the folks who can write checks into these products.”
The Vaneck head of digital assets research added: “If that $2 billion happened in week one, you know, that would blow away our estimates.” He clarified that his asset management firm has predicted $2.5 billion of capital to flow into spot bitcoin ETFs in the first quarter of trading. “We’re at $2.5 billion in the first quarter of trading, which we do by looking at the past flows into the first gold ETF and adjusting by the U.S. money supply,” he explained, emphasizing: “We have a $40 billion market opportunity over two years based on the similar analysis.”
In December last year, Blackrock revealed in an SEC filing a plan to seed its spot bitcoin ETF with $10 million on Jan. 3. In October last year, the asset manager seeded its spot bitcoin ETF with $100K. Blackrock has named Jane Street and JPMorgan as authorized participants for its spot bitcoin ETF.
Commenting on Blackrock lining up $2 billion for its spot bitcoin ETF launch, Bloomberg ETF analyst Eric Balchunas said on X: “It would be on brand for Blackrock. They’ve lined up and injected big cash into new ETFs on the first day of trading so it registers as volume/flows. *If* it’s true, $2b would blow away all first day/week volume/aum records for an ETF.”
The analyst then noted that out of the “25 most successful ETF launches of all time,” Blackrock dominates the top 10. “This is lined up cash (not organic) hence why I say ‘on brand.’ This is what they do,” he stressed. Moreover, the analyst emphasized:
I got a second source to confirm Matt’s claim that they have big day one $ lined up.
According to Fox Business, Blackrock expects its spot bitcoin ETF to be approved by Wednesday, the deadline for the SEC’s decision on Cathie Wood’s Ark Invest and 21shares’ spot bitcoin ETF proposal. The securities regulator is expected to green-light multiple spot bitcoin ETFs simultaneously.
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