BlackRock, the world’s largest asset manager, has taken a cautious step towards incorporating Bitcoin into its investment strategies. Recent Securities and Exchange Commission (SEC) filings reveal that two of BlackRock’s income-focused funds, the Strategic Income Opportunities Fund (BSIIX) and the Strategic Global Bond Fund (MAWIX), have purchased shares of the iShares Bitcoin Trust (IBIT), BlackRock’s own spot Bitcoin exchange-traded fund (ETF).
These purchases, while relatively small compared to the overall size of the funds (BSIIX: $3.56 million, MAWIX: $485,000), mark a significant development. They represent the first instance of BlackRock directly integrating Bitcoin exposure into its income and bond offerings.
BlackRock’s Bitcoin ETF Gains Traction
The iShares Bitcoin Trust (IBIT), launched in January 2024, has quickly become a major player in the spot Bitcoin ETF market. With holdings currently exceeding $19.6 billion, IBIT trails only the converted Grayscale Bitcoin Trust (GBTC) in terms of total Bitcoin held by a single ETF.
This rapid growth in spot Bitcoin ETFs highlights the burgeoning interest from institutional investors. According to CoinGecko data, spot Bitcoin ETFs globally now hold over 1 million Bitcoin, representing roughly 5.1% of the total circulating supply.
Broad Institutional Adoption of Bitcoin ETFs
The SEC filings also revealed that over 600 U.S. investment firms have joined the Bitcoin bandwagon by purchasing shares of various spot Bitcoin ETFs since their January launch. This list includes prominent names like Morgan Stanley, JPMorgan, Wells Fargo, and hedge funds such as Millennium Management and Schonfeld Strategic Advisors.
Millennium Management stands out as the most aggressive investor in spot Bitcoin ETFs, accumulating a staggering $1.9 billion across various offerings. This includes $844.2 million invested in IBIT and $806.7 million in the Fidelity Wise Origin Bitcoin Fund (FBTC).
BlackRock’s foray into Bitcoin extends beyond its own spot Bitcoin ETF. In May 2024, the firm was among eight institutions whose spot Ether (ETH) ETF proposals received approval from the SEC. However, these Ether ETF products still require final approval through the SEC’s Form S-1 filing process before they can begin trading.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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