As the cryptocurrency market continues to develop, BlackRock recently announced that they expect the Bitcoin spot ETF to be approved, which has attracted widespread attention from the market. At the same time, analysts have also said that once this ETF is approved, it will be expected to break the record of ETF trading volume. Let us analyze the background, impact and future trends of this important event in depth.

In the past few years, Bitcoin, as a digital currency, has attracted great interest from investors around the world. Its characteristics such as decentralization, anonymity and scarcity have made Bitcoin one of the popular assets pursued by investors. However, due to its large price fluctuations and unclear supervision, traditional investors have always been reserved about Bitcoin. The move of BlackRock, a world-renowned asset management company, will undoubtedly bring new opportunities and challenges to the Bitcoin market.

As one of the world's largest asset management companies, BlackRock's actions not only represent recognition of Bitcoin, but also mean that institutional investors will have more ways to participate in the Bitcoin market. Once the Bitcoin spot ETF is approved, it will attract more funds to flow into this market, thereby driving up the price of Bitcoin. This will also provide more options for investors, lower the investment threshold, and promote the development of the digital currency market.

From historical data, ETF trading volume has always been one of the important indicators of market attention. Once BlackRock's Bitcoin spot ETF is approved, it is expected to attract a large number of investors to participate in transactions, thereby promoting the explosive growth of ETF trading volume. This growth momentum will not only break the existing ETF trading volume record, but also inject more vitality and funds into the entire digital currency market. This also means that investors' interest in Bitcoin and digital currencies continues to heat up, and the market will usher in more opportunities and challenges.

In the future development, what impact will the approval of the Bitcoin spot ETF have on the entire digital currency market? This issue has attracted much attention. On the one hand, the participation of institutional investors will enhance the liquidity and transparency of the market and provide stronger support for the price stability of digital currencies such as Bitcoin. On the other hand, the launch of ETFs will also promote the standardization and supervision of the digital currency market and provide investors with a safer and more transparent investment environment.

In summary, BlackRock expects that the approval of the Bitcoin spot ETF is expected to break the ETF trading volume record, and this news is of great significance to the entire digital currency market. With the participation of institutional investors and the advancement of market standardization, digital currencies such as Bitcoin will usher in more development opportunities. Investors will also have more ways to participate in this emerging market and share the investment opportunities brought by digital currencies. In the future, let us wait and see and witness more exciting moments in the Bitcoin market.

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Coin Circle (120bTC.coM): According to FoxBusiness, asset management giant BlackRock expects the U.S. Securities and Exchange Commission (SEC) to approve its Bitcoin spot ETF next Wednesday (10th). There are also reports that BlackRock has raised $2 billion in funds to quickly open the trading market on the issuance date.

Analyst: Will break the ETF trading volume record

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. A person familiar with the matter pointed out that the SEC has required issuers to submit a revised S-1 at 8 am on Monday, U.S. time. If both documents are approved, the spot ETF can start trading as early as the next business day.

Matthew, head of digital research at the issuer VanEck, said in an interview with THE
BLOCK that there are rumors that BlackRock has arranged more than $2 billion in capital flows for the new ETF in the first week, and these funds come from existing Bitcoin holders.

It is worth mentioning that Matthew said that if $2 billion in transactions really occurred in the first week, it would far exceed VanEck's expectations, because based on the trading volume of the first gold ETF, they expect the trading volume in the first quarter to be $2.5 billion. Based on similar analysis, they conservatively estimate that the Bitcoin spot ETF will have a market of $40 billion in the next two years.

Bloomberg ETF analyst Eric
Balchunas also expressed excitement about this: This also caught my attention. I haven't heard of this before, but it fits BlackRock's brand image very well. They have injected a large amount of funds into the first day of trading of the new ETF, registering it as trading volume/capital flow. If this is true, $2 billion will break all records of first-day and first-week trading volume/asset management scale of all ETFs.

BlackRock is hurt by ESG and is rumored to lay off 3% of its employees

On the other hand, according to Fox Business, BlackRock, which is preparing for the launch of spot ETFs, may plan to announce layoffs of about 3% of its global employees in the next few days. This time, about 600 employees will be laid off. According to a reliable source, it is internally classified as routine downsizing. The source added that BlackRock also laid off employees based on employee performance indicators last year.

However, in reality, BlackRock faces challenges in its ESG (environmental, social and governance) investment field. In the US market, although ESG investment has been highly valued and optimistic in the past few years, it has now become a focus of controversy. Although BlackRock successfully attracted up to $187 billion in new capital inflows through its ETF business in 2023, its performance in sustainable energy investment has not met expectations, and the return rate of green investment funds has continued to be frustrated.

Internal sources revealed that the funds saved from the upcoming layoffs will be reinvested in the field of new technologies. Despite opposition to ESG in the United States, the concept is booming internationally, particularly among BlackRock’s foreign clients, including national sovereign wealth funds.