Analyst James Seyffart provided clarifications regarding speculations surrounding BlackRock’s potential involvement in Bitcoin accumulation ahead of the anticipated approval of the upcoming BTC spot ETF. Attention is focused on the assumption that the financial giant could invest $10 million in Bitcoin, generating diverse opinions within the blockchain community.
Seyffart argued that, based on BlackRock’s historical trajectory in its ETF endeavors, the initial investment is likely to fall within the range of $5 to $10 million. Additionally, he highlighted a consistent pattern where the investment significantly increases, often reaching hundreds of millions or even one billion dollars, a few hours after the ETF’s launch. It’s worth mentioning that other market participants, such as Bitwise, are also considering substantial investments, up to $200 million.
The analyst addressed concerns about possible secret Bitcoin purchases by BlackRock before approval from the U.S. Securities and Exchange Commission (SEC). While Seyffart acknowledges the possibility, he emphasizes that financial institutions like BlackRock typically acquire Bitcoin close to the ETF’s launch date rather than making purchases weeks before approval.
Ethereum Would Be the Next on the ETF List After Bitcoin
Furthermore, anticipation regarding the approval of the BTC spot ETF has sparked speculation about which cryptocurrency might be next in line for an ETF. BlackRock has already taken the initiative, submitting an application for an Ethereum ETF, and Grayscale is currently progressing in converting its Ethereum Trust to an ETF, suggesting a growing interest in expanding traditional financial instruments within the cryptocurrency universe.
Regarding the outlook for ETFs of other cryptocurrencies like XRP, Solana (SOL), and Cardano, Seyffart expressed his opinion that it is unlikely they will get an ETF in the near future. He highlights the need for a significant change in regulatory dynamics for more cryptocurrency ETFs to emerge, suggesting that we might see new developments with a new administration at the SEC, in case leadership changes occur.