Bitcoin has surged over 7% in the last 24 hours, reaching $47,248, and is trading near its peak. The coming hours are critical as volatility is expected to increase before the week’s end. BlackRock’s interest in Bitcoin is significant because it is the world’s largest asset manager, known for lending to governments and managing over $10 trillion in customer assets. This interest could facilitate Bitcoin’s adoption by institutional investors.
Asset management firms like BlackRock employ private advisors who provide investment recommendations based on clients’ risk profiles and preferences. Investors often allocate a small percentage of their cumulative investment to risk markets, such as ETFs tracking stocks in emerging markets or companies with low market capitalization.
If BlackRock obtains approval for a spot Bitcoin ETF, it could tap into a vast pool of institutional and accredited investors, suggesting they allocate 1% of their assets to a new Bitcoin fund. The issuance of the ETF by a highly reliable institution like BlackRock is expected to attract investor interest.
Even a 1% or 0.5% allocation from the $10 trillion in managed assets to a spot Bitcoin ETF would mean billions of dollars in net inflows. An official from VanEck claimed that BlackRock could draw over $2 billion in net demand initially, with a significant portion already pledged in pre-orders, potentially leading to annual inflows of $50 billion for ETFs.
The listing of the ETF later in the week and the first-day volumes will be crucial. If 11 ETFs can achieve over $2-3 billion in cumulative daily volume, it could lead to massive weekend rallies for cryptocurrencies, provided inflation does not spike absurdly high on Friday. Bitcoin’s main psychological barrier is $50,000, and surpassing this could fuel excitement for new all-time highs, potentially reaching $60,000 and beyond within weeks, driven by continuous institutional demand.
