- VanEck's head of digital asset research stated BlackRock has over $2 billion lined up in incremental flows in the first week.
- This would create a new record as in the history of ETF launches, it would be the largest volume.
- VanEck itself expects about $2.5 billion in trading volume in the first quarter of trading.
- Senator Warren backed Better Markets and sent a last-minute letter to the SEC Secretary asking for a rejection of the spot Bitcoin ETFs.
The spot Bitcoin ETF race is in its last leg, and the competition seems to be heating up, with BlackRock set to blow its competitors out of the water. The world's largest manager apparently has billions of dollars lined up in the first week, which would create history in the ETF market.
BlackRock set to nuke the ETF market
During a recent Twitter Spaces event, the Head of Digital Asset Research at VanEck, Matthew Sigel, stated that BlackRock would likely create a new record for the largest flow of volume for the first day or week of trading for an exchange-traded fund (ETF).
The quote provided by The Block's editor-in-chief and the host of said Twitter space read,
"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 — 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. And our estimates — that, you know, if that $2 billion happened in week one, you know, that would blow away our estimates.
Per the comment, Sigel went on to provide VanEck's estimated trading volume from the spot Bitcoin ETF in the first quarter, which, based on the past flows into the first gold ETF and adjusting by the US money supply, is set at $2.5 billion. This sets their two-year target at $40 billion.
Bloomberg ETF analyst Eric Balchunas, while they did not validate the comment, did provide some credibility by saying,
"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.
Attempts at stopping Bitcoin ETFs
While most of the TradFi market, along with the crypto market, is keenly awaiting the approval and launch of the spot Bitcoin ETFs, an entity known as Better Markes is attempting a last-minute obstruction in the process.
The nonprofit, known to be supported by Senator Elizabeth Warren in the past, sent a letter to the Secretary of the Securities and Exchange Commission (SEC) saying the regulatory body should reject the ETF requests. The supplemental letter also asked the SEC not to let the Grayscale lawsuit ruling interfere with the regulator's earlier standing of rejecting the applications.
Bloomberg ETF analyst James Seyffart tweeted, addressing the letter, that it would be criminal to accept Better Market's request at the eleventh hour.
Would be an absolutely criminal move for this to happen considering the time effort and energy from all these issuers AND from the SEC staff over the last few months https://t.co/QZR4pqcyga
— James Seyffart (@JSeyff) January 5, 2024
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.