News: BlackRock, the global financial giant, 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.
Let’s see below all the details.
Summary
Bitcoin ETF: latest news on BlackRock investments
As anticipated, BlackRock, the world’s largest asset management company, is taking significant steps in the world of cryptocurrencies.
According to the latest news, through its Global Allocation fund of 15 billion dollars, and the Strategic Income Opportunities fund of 36 billion dollars, BlackRock plans to invest significantly in Bitcoin-related ETFs.
This decision, partly announced last week, has captured the attention of investors and cryptocurrency enthusiasts.
It is no coincidence that the entry of BlackRock into the cryptocurrency market is seen as a sign of growing institutional acceptance of the sector.
The company, with over $8.6 trillion in assets under management, could pave the way for other major financial players interested in cryptocurrencies.
The investments planned in the Global Allocation and Strategic Income Opportunities funds underline BlackRock’s confidence in the long-term potential of cryptocurrencies, especially Bitcoin.
As a result, this move could trigger an increase in demand for cryptocurrency-linked ETFs and provide further legitimacy to this emerging asset.
In other words, BlackRock’s advancement in the Bitcoin ETF market continues to represent a significant turning point for the cryptocurrency sector, highlighting their increasingly important role in institutional investors’ portfolios.
BlackRock’s request to the SEC
On Monday, BlackRock filed a request with the United States Securities and Exchange Commission (SEC) to inform the agency that its strategic income opportunities portfolio will begin investing in Bitcoin through approved spot ETFs.
Specifically, the document reads as follows:
“The Fund may acquire shares of exchange-traded products (“ETPs”) that seek to generally reflect the performance of the price of bitcoin by holding bitcoin directly (“Bitcoin ETPs”), including shares of a Bitcoin ETP sponsored by an affiliate of BlackRock.”
It is expected that BlackRock’s acquisition of Bitcoin will influence other Wall Street companies to follow suit.
Furthermore, Bitcoin has demonstrated its potential as a hedge against high fiat inflation and its ability to preserve wealth against global geopolitical threats.
Currently, BlackRock’s IBIT holds approximately 164,501 Bitcoin, with a value of around 10.1 billion dollars.
With a sponsorship commission of about 0.25%, the IBIT has continued to attract more money flows, mainly thanks to its deep liquidity and reputation.
Bitcoin at all-time high with increased investments and ETF approval
After over two years, the value of Bitcoin is trying to surpass its all-time high (ATH), driven by increasing demand from financial institutions.
With the increase in cryptocurrency flows over the past two years, the price of Bitcoin is now on the verge of a significant development. Furthermore, in about 46 days, the long-awaited fourth Bitcoin halving will occur, which will reduce the daily supply of BTC from 900 to 450 coins.
In recent weeks, the Bitcoin ETFs, managed by iShares Bitcoin Trust and provided by BlackRock, have absorbed Bitcoin worth about 600 million dollars per day.
Despite significant 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.
We remind you that BlackRock has a significant influence on the economy of the United States.
