In a recent discussion on Twitter Spaces, Matthew Sigel, head of digital asset research at VanEck, revealed key information about financial giant BlackRock’s investment plans regarding Bitcoin.
According to him, BlackRock set aside $2 billion to invest in the Bitcoin ETF in the first week after launch.
During the debate, which was attended by financial market personalities such as Eric BalchunasEleanor Terrett and James Seyffart, Sigel expressed his surprise at the size of the amount mentioned.
Although he expected significant interest, estimating around $2.5 billion in the first quarter, the claim that BlackRock alone could invest $2 billion exceeded his expectations.
VanEck’s Matthew Sigel just said he’s heard from a well-placed source that BlackRock has $2 billion in capital lying around from existing bitcoin holders looking to swap for spot bitcoin ETFs in the first week. If true, $2 billion would blow away all first day/week volume/aum records…
— Wu Blockchain (@WuBlockchain) January 6, 2024
$2 billion in Bitcoin
Sigel emphasized that “interest is extremely high,” an observation echoed by Balchunas, who speculated in the early days about possible significant allocations.
Ark Invest, another asset management giant, also joined the conversation after selling $130 million worth of GBTC, with possible plans to divert the money into its own Bitcoin spot ETF.
The cryptocurrency industry is eagerly awaiting developments, especially regarding the filing of 19b-4 forms, which are seen by many as a crucial step toward the official approval of ETFs.
Official confirmation is expected to come on Monday (8), but completing these forms would already be a sign of impending approval.
Considering that BlackRock manages more than $14 trillion in assets, the $2 billion investment represents approximately 0.15% of assets under management.
If confirmed, the investment could trigger a wave of major Bitcoin buying next week, which would mark a key moment in the digital coin’s institutional adoption.
Despite all the signs pointing to ETF approval as soon as next week, not everything is rosy and managers face obstacles. Better Markets, backed by Senator Elizabeth Warren, one of Bitcoin’s biggest critics in the United States, sent a letter to the SEC asking it to reject the ETFs.
The measure has sparked controversy, with differing opinions on whether it is a necessary precaution or a barrier to innovation.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
