BlackRock Integrates Bitcoin ETF into Income and Bond Portfolios!
BlackRock, a global investment management corporation, has made significant investments in Bitcoin exchange-traded funds (ETFs) through its income and bond-focused funds. Recent regulatory filings reveal the extent of these investments in the first quarter of the year.
Key Investments
Strategic Income Opportunities Fund
BlackRock’s Strategic Income Opportunities Fund, valued at over $37.4 billion, purchased $3.56 million worth of shares in the iShares Bitcoin Trust (IBIT). This investment represents a small portion of the fund’s extensive portfolio.
Strategic Global Bond Fund
Similarly, the Strategic Global Bond Fund, worth $776.4 million, acquired $485,000 worth of IBIT shares. These purchases highlight BlackRock’s strategic interest in Bitcoin ETFs.
Bitcoin Holdings
As of May 24, the iShares Bitcoin Trust holds $19.61 billion in Bitcoin. It is the second-largest Bitcoin fund, following the Grayscale Bitcoin Trust (GBTC), which holds $19.76 billion.
Global Bitcoin ETF Holdings
Spot Bitcoin ETFs globally now hold over 1 million Bitcoin, valued at more than $68 billion. This accounts for nearly 5.10% of Bitcoin’s total circulating supply, which is over 19.7 million BTC.
Widespread Adoption
More than 600 U.S. investment firms have purchased spot Bitcoin ETFs since their introduction in January. Major financial institutions such as Morgan Stanley, JPMorgan, Wells Fargo, and the Royal Bank of Canada are among the investors. Hedge funds like Millennium Management and Schonfeld Strategic Advisors have also shown considerable interest.
Leading Investors
Millennium Management is the largest investor in spot Bitcoin ETFs, with $1.9 billion invested. This includes $844.2 million in IBIT and $806.7 million in the Fidelity Wise Origin Bitcoin Fund (FBTC).
Future Prospects
On May 23, BlackRock was among eight firms to receive approval for a spot Ether (ETH) ETF bid in the U.S. The Securities and Exchange Commission (SEC) must approve the firms’ Form S-1 filings before these products can begin trading.
BlackRock’s investments in Bitcoin ETFs signify a growing trend among major financial institutions to include digital assets in their portfolios. As the market for these funds expands, the involvement of prominent firms like BlackRock underscores the increasing acceptance and integration of cryptocurrency into mainstream finance.
