BlackRock, one of the world’s largest investment management firms, could be receiving as much as $200 billion for its spot Bitcoin Exchange-Traded Fund (ETF), according to former CEO Steven Schoenfeld. Schoenfeld made these comments during a speech at CCData’s recent Digital Asset Summit held in London.
During a panel discussion on ETFs for new assets, Schoenfeld expressed confidence that the U.S. Securities and Exchange Commission (SEC) will approve spot Bitcoin ETFs in the near future. He believes that this approval could come as early as January, as previously reported by Bloomberg Intelligence.
Schoenfeld also pointed out that the recent case won by Grayscale against the SEC may effectively force the agency to approve the conversion of the Grayscale Bitcoin Trust into an ETF. This has led to speculation that the SEC may approve all legitimate requests for ETFs on spot Bitcoin to avoid giving anyone an advantage.
Based on his firm’s analysis, Schoenfeld estimates that the approval of ETFs on spot Bitcoin could bring in an inflow of between $150 billion and $200 billion in Bitcoin derivative investment products over the next three years. This could potentially double or even triple the assets under management (AUM) of crypto derivatives.
While Schoenfeld’s comments should be considered as hypotheses rather than confirmed facts, they present an interesting outlook for the market. If tens or hundreds of billions of dollars flow into spot BTC ETFs, the managers would be required to buy BTC on the spot market as collateral for the ETF shares. This increased demand for the underlying asset could result in a price increase, especially during the post-halving period when big bull runs often occur.
It is important to note that Schoenfeld’s estimates cover a three-year period, during which Bitcoin’s halving event is expected to occur. Halving reduces the supply of new BTC created as rewards for miners, potentially leading to a reduction in the BTC sold daily on exchanges. This, coupled with increased demand from ETF managers, could have a positive and significant impact on Bitcoin’s price.
While these predictions remain speculative, they highlight the potential growth and impact that the approval of BlackRock’s Bitcoin ETF could have on the market. Investors and crypto enthusiasts will be keeping a close eye on the SEC’s decision and the subsequent developments in the market.