BlackRock, a leading global asset management company, increased its holdings in two of its funds, BlackRock Strategic Income Opportunities Portfolio (BSIIX) and BlackRock Strategic Global Bond Fund (MAWIX), by adding $3.6 million and $486,000 worth of iShares Bitcoin Trust (IBIT) shares to them respectively, with a total value of $4.1 million in the first quarter of 2024. This increase reflects BlackRock's positive attitude towards Bitcoin (BTC) investment.
According to a filing with the U.S. Securities and Exchange Commission (SEC) on May 28, BlackRock had previously disclosed plans to add IBIT to its other funds in a filing on March 8. In addition, BlackRock also reported in its 13F filing on May 10 that it owned $6.6 million worth of IBIT shares.
Hundreds of companies hold shares in IBIT
BlackRock's increase in holdings is not isolated. According to Fintel data on May 28, at least 422 companies have disclosed their holdings in IBIT. Bloomberg ETF analyst Eric Balchunas commented that even 20 holders are significant for a new ETF. As the most popular spot ETF, IBIT has attracted a lot of attention from investors, among which Millennium Management and Schonfeld Strategic Advisors have the largest holdings, at $844.2 million and $248 million, respectively.
In addition, some global systemically important banks (G-SIBs), including JPMorgan Chase, Bank of America, Bank of New York Mellon, BNP Paribas, UBS and Royal Bank of Canada, have also invested in IBIT.
IBIT ranks first
In terms of outflows, IBIT continues to lead, with net flows of $16.4 billion as of May 24, double the second-highest net flow to date for Fidelity FBTC. As of May 28, IBIT reported assets under management (AUM) of $17.2 billion, accounting for 31% of the total AUM of all spot Bitcoin ETFs. Although Grayscale's GBTC surpasses IBIT with $20 billion in AUM, accounting for 37% of the total, it has seen $17.7 billion in net outflows since its launch.
BlackRock's increased holdings and IBIT's strong performance further demonstrate the attractiveness of Bitcoin as an investment asset and the trend of integration between the cryptocurrency market and the traditional financial market. With the participation of more and more investors and capital, the cryptocurrency market is expected to usher in a more mature and stable development.
Conclusion:
BlackRock's increase in holdings in IBIT not only reflects its confidence in Bitcoin investment, but also marks the recognition and participation of traditional asset management giants in the cryptocurrency market. This action may attract more institutional investors to enter the Bitcoin ETF market, further promoting the maturity and stability of the market.
As more and more capital flows in, the scale and influence of the Bitcoin ETF market is expected to continue to expand, providing investors with more investment opportunities and options. At the same time, this will also promote the regulation and standardization of the cryptocurrency market and lay the foundation for the long-term healthy development of the market.
This move by BlackRock has undoubtedly injected new impetus into the development of the Bitcoin ETF market and provided a positive example for the integration of cryptocurrency and traditional finance.
