A few BlackRock funds went ahead and invested in the firm’s Bitcoin ETF, renewing investor’s trust in the crypto investment products and sending a bullish signal across the market.
Two BlackRock funds have created a stir in the crypto market, with investors’ confidence getting big support. These two funds, which are income and bond-based funds, invested in BlackRock’s own Bitcoin ETF. This Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has become a popular investment product for investors across the US. It has attracted a steady stream of inflows since January 2024, running to billions.
BlackRock’s Strategic Income Opportunities Fund (BSIIX) invested $3.56 million in the ETF. On the other hand, Strategic Global Bond Fund (MAWIX) bought shares of the ETF worth $485,000. Although these purchases don’t seem to be a huge number, the move has likely noted the ETF’s potential for the future.
BlackRock is the largest asset manager of the world, managing assets worth around $10 trillion. The BSIIX and MAWIX funds alone are worth $37.4 billion and $776.4 million respectively. Meanwhile, IBIT currently holds BTC worth over $19 billion. It attracted these investments within a period of only a few months. The Grayscale Bitcoin Trust holds the second spot, also holding BTC just a little below that of IBIT.
The spot Bitcoin ETFs in the US together hold around 1 million BTC in total, which is a very encouraging sign. Moreover, the US SEC has also approved a few Ether ETFs.
These developments have been met with enthusiasm from both traditional and crypto-savvy investors. Spot ETFs offer a familiar investment vehicle for those hesitant about the complexities of managing their own crypto wallets and navigating through other avenues. Additionally, the increased institutional participation facilitated by ETFs could bring more stability and legitimacy to the crypto market.
It remains to be seen how these new products will impact the long-term trajectory of Bitcoin.
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