BlackRock and Bitcoin: The ETF that could inject 150 billion

BlackRock-ETF-Bitcoin
Laurence "Larry" Fink, Chairman and Chief Executive Officer of BlackRock, Inc., speaks during an Economic Club of Washington event in Washington, D.C., on April 12, 2017. Photo by Kristoffer Tripplaar *** Please Use Credit from Credit Field ***(Sipa via AP Images)


IMPORTANT POINTS:

  • Bitcoin boom with BlackRock: A flow of 150 billion is anticipated if BlackRock’s Bitcoin ETF is approved.
  • Unbreakable Reputation: BlackRock and Vanguard ETFs are seen as the “new IBM,” guaranteeing trust among investors.
  • Gold and Equity-Based Forecast: Balchunas’ estimate is based on the value of gold ETFs and total equity managed in the US.

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The world of cryptocurrencies is on the verge of significant change. According to Eric Balchunas, a renowned senior exchange-traded fund (ETF) analyst at Bloomberg, approximately $150 billion in capital is expected to flow into the Bitcoin (BTC) market over the course of the next one to two years.

This significant boom would occur if BlackRock, the investment management giant, achieves approval of its Bitcoin-based ETF.

In a recent interview with journalist Paul Barron, Balchunas detailed how the approval of BlackRock’s ETF could catapult Bitcoin to a privileged status in the minds of numerous traditional financial advisors. The analyst noted: “If you have a BlackRock ETF, you are in the big leagues.”

Balchunas evoked an analogy, mentioning that “BlackRock and Vanguard ETFs are the new IBM.” This comparison suggests that, in times past, going with IBM was a safe bet for investors. The analyst explained: “It was said that you would never be fired for buying IBM. It was simply the best option, an all-American company.” In today’s environment, buying a BlackRock or Vanguard ETF represents that same security and confidence.

The bold projection of 150 billion Balchunas is not a figure thrown at random. His estimate is based on two fundamental pillars. First, take into account the current value of gold ETFs, which is around that number. Also, consider the immense capital that wealth advisers and managers handle in the United States.

“These advisers and managers control close to $30 trillion for America’s wealthiest citizens. If only 0.5% of that capital is transferred to Bitcoin, we are talking about 150 billion”, he concluded.