The focus of the market this week is whether the U.S. Securities and Exchange Commission (SEC) will approve the first Bitcoin spot ETF. The scale of seed funds invested by each issuer has attracted much attention. According to the latest S-1 revised filing, VanEck has injected $72.5 million in seed funding for its Bitcoin spot ETF, BlackRock has injected $10 million in seed funding, and Fidelity has injected $20 million in seed funding.
It is worth noting that according to SpotOnChain data, in the past three months, 5 billion stablecoins USDT have been minted on the Ethereum network, of which 2.95 billion have flowed directly into a wallet starting with 0x1db, and After being subsequently deposited into different centralized exchanges, such a large amount of funds has to make investors speculate whether ETF institutions have already entered the market to buy Bitcoin spot in advance?
According to SpotOnChain, of the 2.95 billion USDT, 1.76 billion USDT flowed into Coinbase, 517 million USDT flowed into Kraken, 434 million USDT flowed into Binance, and US$232 million flowed into Kraken.
In fact, all SEC-approved spot ETFs require the use of "cash" Subscription/Redemption Mode". Under this model, authorized participants (APs) use cash to create or redeem shares of the Bitcoin Spot ETF. This means that authorized participants provide cash to the ETF fund, which the fund manager then uses to purchase Bitcoin.
In an interview with THE BLOCK, VanEck’s head of digital research Matthew revealed that BlackRock is rumored to have arranged more than $2 billion in capital flows for the new ETF, which is said to come from existing Bitcoin Coin holders. Therefore, it can be seen that institutions have begun to place Bitcoin spot positions in the past three months, which is not unfounded.
On the other hand, Matthew said that if $2 billion in transactions did occur in the first week, it would far exceed VanEck's expectations. Based on their analysis of trading volumes for the first gold ETF, they expect volumes to reach $2.5 billion in the first quarter. Based on similar analysis, they conservatively estimate that Bitcoin spot ETF will reach a market size of US$40 billion in the next two years.
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