Institutional BTC Purchase in the Works? Mysterious Wallet Transfers $2.95 Billion USDT to Exchanges Ahead of ETF Decision
High Stakes: SEC’s Imminent Decision on Spot Bitcoin ETF
As the market eagerly anticipates the U.S. Securities and Exchange Commission’s (SEC) potential approval of the first Spot Bitcoin ETF in the coming hours, the spotlight turns to the substantial seed funds invested by various issuers. Notably, VanEck has infused $72.5 million into its Spot Bitcoin ETF, BlackRock has committed $10 million, and Fidelity has allocated $20 million.
Further reading：The Fate of Spot Bitcoin ETF in SEC Commissioners’ Hands: Diverse Perspectives on Cryptocurrency
$2.95 Billion USDT Moves to Centralized Exchanges: Preemptive Institutional Positioning?
Intriguingly, data from SpotOnChain reveals that in the past three months, 5 billion USDT were minted on the Ethereum network, with a whopping $2.95 billion flowing into a wallet beginning with 0x1db. This massive influx of funds, predominantly transferred to centralized exchanges like Coinbase, Kraken, and Binance, raises speculation about whether institutions are positioning themselves in anticipation of the ETF.
VanEck’s Forecast: A $40 Billion Market for Spot Bitcoin ETF in Two Years
The approved spot ETFs are mandated to adopt a ‘cash creation/redemption model’, where Authorized Participants (APs) deal with the ETF in cash. This influx of institutional cash is expected to be utilized by fund managers to purchase Bitcoin. According to Matthew, Digital Research Lead at VanEck, rumors of BlackRock arranging over $2 billion in the ETF’s first week suggest that institutions might have been positioning in Bitcoin spot markets over the last three months.
Further reading：BlackRock Awaits Green Light for Spot Bitcoin ETF: A $2 Billion Leap into Crypto
A Conservative Estimate: The Future of Spot Bitcoin ETF
Matthew’s conservative estimate, based on the first gold ETF’s trading volume, projects a potential $40 billion market for the Spot Bitcoin ETF in the next two years, far exceeding initial expectations if the rumored $2 billion transaction materializes in the first week.
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Keywords: Spot Bitcoin ETF, SEC, Institutional Investment, USDT, Centralized Exchanges, VanEck, BlackRock, Fidelity, SpotOnChain, Cryptocurrency, Digital Assets, Market Speculation
