Matthew Sigel, head of digital assets research at VanEck, said he heard from a well placed source that BlackRock has $2 billion of capital lined up from existing bitcoin holders who want to switch to its spot bitcoin ETF in the first week of trading. If true, this would surpass any previous records for ETF volume and assets under management.
Potential First Week Switch to ETF
Matthew Sigel, head of digital assets research at VanEck, said he heard from a well placed source that BlackRock has $2 billion of capital lined up from existing bitcoin holders who want to switch to its spot bitcoin exchange-traded fund (ETF) in the first week of trading. If true, this would surpass any previous records for ETF volume and assets under management.
Sigel made the claim on X (formerly Twitter) on Jan. 5, citing @Timccopeland, a journalist at Decrypt, who reported that the average daily volume of the top 100 ETFs by trading volume was $849 million in 2021. According to ETF Database, the highest first-day volume for an ETF was $1.5 billion for the SPDR Gold Trust (GLD) in 2004, while the highest first-week volume was $2.6 billion for the ProShares Bitcoin Strategy ETF (BITO) in 2021.
A Marketing Strategy?
BlackRock, the world’s largest asset manager, filed an application with the U.S. Securities and Exchange Commission (SEC) in June 2021 to launch the iShares Bitcoin Trust, a spot bitcoin ETF that would track the price of bitcoin directly rather than through futures contracts. The SEC has not yet approved any spot bitcoin ETFs, but has allowed several ETFs tied to bitcoin futures to start trading in 2021.
Sigel’s tweet sparked a lot of interest and speculation among crypto enthusiasts and investors, who see the spot bitcoin ETF as a more efficient and transparent way to gain exposure to the leading cryptocurrency. Some also expressed skepticism about the source and validity of Sigel’s claim, noting that it could be a marketing strategy for VanEck, which also filed for a spot bitcoin ETF in 2021.
Growing Interest in the Crypto Space
VanEck and BlackRock are among the leading providers of ETFs in the U.S., with $1.4 trillion and $2.8 trillion in ETF assets under management, respectively, as of Dec. 31, 2021. Both firms have also shown interest and involvement in the crypto space, offering various products and services related to digital assets.
Bitcoin was trading at $43,858.02 as of 08:06 UTC on Jan. 6, up 2.22% in the past 24 hours. The cryptocurrency has gained 8.9% in the past week, but is still down 37.1% from its record high of $68,991 on Nov. 10, 2021.