The imminent approval of Bitcoin spot ETF: Winners are those with high issuance volume
Bloomberg ETF analyst Eric Balchunas mentioned Bitcoin spot ETF in an interview with Blockworks. He pointed out that in the early stages of ETF issuance, especially in the first few weeks, the trading volume and amount of inflow funds of the ETF will be more effective than any advertising marketing. So, can we see the ETF issuer buying a large amount of their own ETF shares to make themselves look like winners?
Contents:
First, increase the volume of ETF, regardless of whether it is fake assets or not.
BlackRock, Bitwise, and Ark Invest have started to layout.
Balchunas mentioned that whether it is internal or external funds, as long as the volume of the ETF can be increased in the early stages of issuance, it can make the issuer look like a winner, even if it is “fake assets”!
Although he added in X:
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The term “fake assets” may be too exaggerated. Because the assets under management (AUM) are real, they are just not fresh (organic fresh).
BlackRock
It had previously planned to inject a $10 million seed fund into the Bitcoin spot ETF (code IBIT) on January 3rd. “Seed fund” refers to the fund raised by the issuing institution before the ETF is officially listed, which will be used to purchase the index or assets tracked by the ETF in order to obtain sufficient liquidity when the ETF is listed and reduce the risk of the issuing institution.
Last week, Bitwise also stated in its latest submission that it will inject up to $200 million in seed funds to pave the way for its ETF.
Ark Invest also completely liquidated the Grayscale Bitcoin Trust GBTC in its ARKW last week and bought $92.07 million of BITO (Bitcoin Futures ETF), maintaining the Bitcoin Beta coefficient in its ARKW. Once Ark Invest’s Bitcoin spot ETF ARKB is approved, it is believed that the holdings of BITO will also be quickly liquidated and converted into Ark Invest’s ARKB.
(End of the Grayscale era? Ark Invest liquidates all GBTC and buys BITO)
Bitwise
Ark Invest
Bitcoin spot ETF
BlackRock
Further reading:
BlackRock injects $10 million seed fund in January, analyst: meets the January approval prediction
BlackRock meets with SEC again, Coinbase’s role will change to “primary execution agent”
