BlackRock has expanded its investment portfolio by incorporating its own spot Bitcoin exchange-traded fund (ETF) into its income and bond-focused funds. This strategic move was revealed in regulatory filings from the first quarter of the year.
Significant Investments in Bitcoin ETF
BlackRock’s Strategic Income Opportunities Fund (BSIIX) made a notable investment of $3.56 million in the iShares Bitcoin Trust (IBIT). Additionally, the Strategic Global Bond Fund (MAWIX) purchased $485,000 worth of IBIT shares, according to Securities and Exchange Commission (SEC) filings dated May 28.
Although these IBIT shares constitute a small fraction of the funds’ overall portfolios, they represent a significant step. The BSIIX fund, valued at $37.4 billion, acquired 88,000 IBIT shares. Meanwhile, MAWIX, with an investment portfolio worth $776.4 million, made a smaller but still substantial purchase.
Competitive Landscape of Bitcoin ETFs
As of May 24, IBIT holds $19.61 billion in Bitcoin, positioning it just behind the Grayscale Bitcoin Trust (GBTC), which manages $19.76 billion as of May 28. Globally, spot Bitcoin ETFs now collectively hold over 1 million Bitcoins, worth more than $68 billion. This amount represents nearly 5.10% of the total 19.7 million Bitcoins in circulation.
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Growing Interest from Major Investment Firms
The introduction of spot Bitcoin ETFs has garnered significant interest from over 600 U.S. investment firms since their launch in January. High-profile institutions such as Morgan Stanley, JPMorgan, Wells Fargo, Royal Bank of Canada, BNP Paribas, UBS, and hedge funds like Millennium Management and Schonfeld Strategic Advisors have all invested in these funds.
Millennium Management has emerged as the largest accumulator of spot Bitcoin ETFs, with a total investment of $1.9 billion. This includes $844.2 million in IBIT and $806.7 million in the Fidelity Wise Origin Bitcoin Fund (FBTC).
Future Prospects and Expansions
On May 23, BlackRock was among eight firms to receive approval for its spot Ether ETF bid in the U.S. However, the SEC must approve the firm’s Form S-1 filings before these products can commence trading.
