2024-3-10 19:53 |
BlackRock, one of the world’s largest asset managers with over $9 trillion assets under management, is positioning itself to capitalize on the growing interest in Bitcoin by filing to add spot Bitcoin ETFs to its Global Allocation Fund (MALOX), according to an SEC filing on March 7.
This move marks a significant development in the institutional adoption of Bitcoin, as BlackRock seeks to invest in spot Bitcoin ETFs listed and traded on national exchanges, including its own iShares Bitcoin Trust (IBIT) and ETFs issued by other institutions.
“The fund may acquire shares in ETPs that seek to reflect generally the performance of the price of Bitcoin by directly holding bitcoin — ‘Bitcoin ETPs’ — including shares of a Bitcoin ETP sponsored by an affiliate of BlackRock,” Blckrock said in a statement.
Blackrock’s Growing Interest in BitcoinThe decision to invest in spot Bitcoin ETFs comes as BlackRock’s IBIT has seen a remarkable increase in Bitcoin holdings since its approval on January 11, 2024.
The fund’s Bitcoin holdings have surged from 2,621 on January 11 to 187,531 as of March 7, representing a growth rate of over 7,000%. This substantial increase in Bitcoin holdings underscores BlackRock’s bullish outlook on the digital asset.
BlackRock’s confidence in Bitcoin is further highlighted by its belief that the optimal allocation for Bitcoin in a portfolio should be approximately 84.9%. This view aligns with the growing sentiment among institutional investors that Bitcoin is a viable store of value and a hedge against inflation.
Institutional Uptake and BTC Price PredictionThe approval of spot Bitcoin ETFs is expected to drive further institutional uptake of Bitcoin. Ernst & Young estimated that approximately $200T of institutional asset managers were sceptical about Bitcoin until the spot ETFs were greenlighted.
With more institutions entering the market, Ark Invest’s Cathie Wood speculates that Bitcoin’s price could surpass $600,000.
The approval of spot Bitcoin ETFs could have a significant impact on the market. Even with a conservative 0.5% allocation into Bitcoin by the $200 trillion institutional funds, Bitcoin could see a market cap increase of over $1 trillion. This influx of institutional capital could drive Bitcoin’s price to new all-time highs.
At the time of writing, Bitcoin was trading at $68,220, showing a slight pullback from its recent record highs. However, with the growing institutional interest and the approval of spot Bitcoin ETFs, Bitcoin’s price trajectory remains optimistic, with the potential to reach new all-time highs.
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