Bitcoin believers have long awaited the holy grail of crypto endorsements – the launch of the first U.S. bitcoin exchange-traded fund (ETF). That momentous occasion may finally occur next week, with asset management juggernaut BlackRock reportedly prepared to deploy billions in seed capital into a new spot bitcoin ETF.
Citing a “well placed source,” Block editor-in-chief Tom Copeland tweeted this week that BlackRock has amassed commitments totaling $2 billion from existing bitcoin holders ready to rotate their holdings into a SEC-approved bitcoin ETF in its first week of trading.
Bloomberg ETF analyst Eric Balchunas echoed the claim in a follow-up tweet, speculating that such an injection would “blow away all first day/week volume/aum records for an ETF.”
This caught my attn too, hadnt heard this but it would be on brand for BlackRock. They’ve lined up and injected big cash into new ETFs on 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. https://t.co/vL3psVukcm— Eric Balchunas (@EricBalchunas) January 5, 2024
The SEC has until January 10th to approve or reject a spot bitcoin ETF, but insiders widely expect the regulatory agency to finally relent amidst unrelenting pressure.
As the world’s largest asset manager overseeing $10 trillion in assets, BlackRock packs unrivaled purchasing power. Earmarking $2 billion for bitcoin investment would account for over 0.1% of the cryptocurrency’s total $1.66 trillion market valuation.
The resulting frenzy of inflows from BlackRock and other hungry institutions into the long-awaited vehicle could squeeze bitcoin’s limited supply and send its price rocketing to new highs. After years of contentious debate and false dawns, the bitcoin ETF may soon emerge as crypto’s institutions gateway – with BlackRock boldly leading the charge.
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