Imagine a situation where you own a house and a piece of land it's built on. You estimated the value of the whole thing to be $500k. One day someone knocks on your door and offers you $2m all of a sudden. Will you sell or suspect they know more than you? Maybe there's an oil deposit underneath your house? Maybe there's geothermal energy source? Maybe an international company has plans to build a facility nearby and will need your land for whatever price?
I'm asking this because if the funds get approved all at once there will be a large pressure on bitcoin's price and supply is, as we all know, limited.
Nobody buys bitcoin to sell it cheaper, so if they offer you $100k, they think it will go higher. If they offer $1m it's again going to go higher according to them.
Will you simply give it away once someone hands you $100k, or decide that it's cheap and they know more than they're willing to share?
That is a tricky question, because I don't think BlackRock knows more than we do, but we all know that the supply of Bitcoin is limited and if someone controls the majority of the market, he will be able to squeeze prices. As for the story of the house, it all comes down to if you enjoy living in your house and that community, or if you can consider selling it. Assuming I would find a similar house with same sizes for 500k, then I would be selling rather quickly and enjoy the 1.5m cash I get for free. Investing all that money and only using the interest each year is giving a nice boost to my income. With Bitcoin the story would be a bit different, because we don't have to sell all your coins at once. With a house or apartment, we can only sell or keep, there is no in-between. Whenever there is a price jump to 100k or 1m I would only consider to sell maybe 25% of my holdings and never everything, because there is no hard cap on the bitcoin price, it could always rise higher.