BlackRock, the world’s largest asset management company, is making important steps in the world of cryptocurrencies.
Global financial giant BlackRock has announced massive investments in Bitcoin ETFs through its Global Allocation and Strategic Income Opportunities funds, an unprecedented move that could redefine the crypto landscape.
According to the latest news, through its $15 billion Global Allocation fund and $36 billion Strategic Income Opportunities fund, BlackRock plans to invest significantly in Bitcoin-related ETFs.
This decision, partially announced last week, has caught the attention of investors and cryptocurrency enthusiasts. Not surprisingly, BlackRock’s entry into the cryptocurrency market is seen as a sign of growing institutional acceptance of the sector.
The company, with more than $8.6 trillion in assets under management, could pave the way for other large financial players interested in cryptocurrencies. The planned investments in the Global Allocation and Strategic Income Opportunities funds underline BlackRock’s confidence in the long-term potential of cryptocurrencies, especially Bitcoin.
In other words, BlackRock’s advance into the Bitcoin ETF market continues to represent a major turning point for the cryptocurrency sector, highlighting its increasingly relevant role in the portfolios of institutional investors.
BlackRock’s Request to the SEC
On Monday, BlackRock filed a request with the U.S. Securities and Exchange Commission (SEC) to inform the agency that its portfolio of strategic income opportunities will begin investing in bitcoin through approved spot ETFs.
In particular, the document establishes the following:
“The Fund may acquire shares of exchange-traded products (“ETPs”) that seek to generally reflect the price performance of bitcoin through direct holding of bitcoin (“Bitcoin ETPs”), including shares of a Bitcoin ETP sponsored by a subsidiary of BlackRock.”
BlackRock’s IBIT currently holds approximately 164,501 Bitcoins, worth approximately $10.1 billion. With a sponsorship fee of around 0.25%, IBIT has continued to attract higher flows, largely due to its deep liquidity and reputation.
Bitcoin at All-Time High as Investments and ETF Approvals Surge
After more than two years, Bitcoin’s value attempts to rise surpass its all-time high (ATH), driven by growing demand from financial institutions. With cryptocurrency flows increasing over the past two years, Bitcoin price is now on the verge of significant development. Furthermore, in about 46 days the long-awaited fourth Bitcoin Halving will occur, which will raise the daily supply of BTC from 900 to 450 coins.
In recent weeks, Bitcoin ETFs, managed by iShares Bitcoin Trust and powered by BlackRock, have absorbed the value of Bitcoin roughly. 600 million dollars a day.
Despite notable capital outflows from the Grayscale Bitcoin Trust (GBTC), due to its high operating fees, more and more asset managers have continued to increase their exposure to Bitcoin through spot ETFs. It should be remembered that BlackRock has a significant influence on the US economy.
BlackRock Bitcoin ETF Draws Record Inflow
Bitcoin briefly hovered above $69,000 on Tuesday, surpassing the all-time high it reached in late 2021. Demand for ETFs and optimism around the token’s upcoming reduction in supply growth have fueled recent gains, although The coin is now trading near US$67,000, likely due to profit taking.
In total, the 10 Bitcoin Cash EFTs in the United States saw record volume on Tuesday, with more than $10.3 trillion in shares changing hands, surpassing a record set last week. The funds have received a total of US$8.5 billion in cash since their launch. That’s in addition to the billions that have been withdrawn from the Grayscale Bitcoin Trust. Fidelity’s FBTC and ARK 21Shares’ ARKB funds follow BlackRock in the most inflows.
By Leonardo Perez
