Bitcoin
Blackrock Reveals Large Bitcoin ETF Holding With 43,000 Shares
In a recent filing with the SEC, BlackRock’s Global Allocation Fund disclosed its ownership of an additional 43,000 shares of iShares Bitcoin Trust from April 30th.
This filing follows BlackRock’s May 28 filing that revealed the fund’s exposure for Bitcoin through its Strategic Global Bond Fund and Strategic Income Opportunities Portfolio.
BlackRock is looking to utilize and integrate Bitcoin into its investments. They have revealed a broader strategy to integrate Bitcoin ETFs into their investment portfolio, reflecting their growing interest in the digital currency market.
Bitcoin Expansion
These stock purchases signal a growing increase in traditional financial institutions investing in Bitcoin — and Bitcoin ETFs.
After Bitcoin ETFs have been approvedapproximately 80% of Bitcoin ETF purchases originated from self-employed or retail investors who made their own allocation through an online brokerage account.
Large firms like BlackRock (or Chase and Morgan Stanley) investing in Bitcoin ETFs signal a changing tide as more large financial investors get involved with the digital asset.
A Spot Crypto ETF tracks the price of a specific cryptocurrency and invests portfolio funds in that cryptocurrency. These funds trade on public exchanges but generally track a specific cryptocurrency. Just like similar funds, crypto ETFs are on regular exchanges and investors can hold them in their standard brokerage accounts.
BlackRock BTC Objectives
In March, BlackRock took a step toward incorporating Bitcoin by filing with the SEC to include Bitcoin ETFs in its Global Allocation Fund. According to the filing, the fund planned to buy shares of exchange-traded products (ETPs).
Blackrock has filed intentions to purchase ETPs and stated that “The Fund may purchase shares in exchange-traded products (“ETPs”) that seek to generally mirror the price performance of bitcoin by directly holding bitcoin (“Bitcoin ETPs”), including shares of a Bitcoin ETP sponsored by an affiliate of BlackRock.”
This initiative is in line with BlackRock’s broader investment strategy for its Global Allocation Fund, a mutual fund designed to diversify investors across a wide range of assets, including stocks, bonds and, most likely, Bitcoin ETPs.
O fund invests globally in equity, debt and short-term securities of corporate and government issuers without specific limits. Under normal market conditions, at least 70% of its assets are invested in these securities.
As of March 2024, the fund manages US$17.8 billion in assets and achieved a YTD return of 4.61%. Their aim is to take advantage of international investment prospects and achieve consistent gains over long periods.