BlackRock expects the US Securities and Exchange Commission (SEC) to approve its Bitcoin spot ETF next Wednesday (10) and has raised $2 billion in funding for this purpose. Analysts say that this $2 billion will break all records for ETF trading volume and asset management size on the first day and first week.
According to Fox Business, asset management giant BlackRock expects the SEC to approve its Bitcoin spot ETF next Wednesday (10). Additionally, there are reports that BlackRock has raised $2 billion in funding to quickly open the trading market on the day of issuance.
Analysts: It will break ETF trading volume records
Currently, not only BlackRock, but also 10 other spot ETF issuers, including Fidelity, Ark, Valkyrie, Grayscale, Bitwise, Hashdex, Invesco, WisdomTree, Franklin Templeton, and VanEck, have submitted revised 19b-4 documents. An insider said that the SEC has requested issuers to submit revised S-1 documents at 8 am US time on Monday, and if both documents are approved, spot ETFs can start trading on the next business day at the earliest.
Further reading: Bloomberg analyst: “Bitcoin spot ETF review is complete”, SEC aims to open trading on 1/11
Matthew, Head of Digital Research at issuer VanEck, said in an interview with THE BLOCK that there are rumors that BlackRock has already arranged over $2 billion in funding for the new ETF in the first week, which comes from existing Bitcoin holders.
It is worth mentioning that Matthew stated that if $2 billion in trading does occur in the first week, it will far exceed VanEck’s expectations. Based on the trading volume of the first gold ETF, they expect the first-quarter trading volume to be $2.5 billion. Based on similar analysis, they conservatively estimate that the Bitcoin spot ETF will have a market of $40 billion within the next two years.
Bloomberg ETF analyst Eric Balchunas also expressed excitement.
On the other hand, according to Fox Business, BlackRock, which is actively preparing for the launch of spot ETFs, may plan to announce layoffs of approximately 3% of its global workforce in the coming days. This time, about 600 employees will be laid off. According to a reliable source, this is classified as a routine downsizing internally. The source added that BlackRock also conducted layoffs based on employee performance indicators last year.
However, in reality, BlackRock faces challenges in its Environmental, Social, and Governance (ESG) investments. In the US market, although ESG investments have been highly valued and optimistic in the past few years, they have now become controversial. Although BlackRock attracted as much as $187 billion in new capital inflows through its ETF business in 2023, its performance in sustainable energy investments fell short of expectations, and the returns of green investment funds have continued to decline.
Insiders revealed that the funds saved from the upcoming layoffs will be reinvested in new technological areas. Although ESG has encountered opposition in the US, this concept is still thriving internationally, especially among BlackRock’s foreign clients, including national sovereign wealth funds.