The 13F filings show that two funds in BlackRock's traditional portfolio are seeking significant investments in the Bitcoin ETF IBIT and have already achieved a 61% return.
The two BlackRock funds have been actively purchasing shares of the iShares Bitcoin Trust ETF (IBIT), investing a total of $78 million in the last quarter ending September 30. The world's largest asset management company is also contributing to the growth of the Bitcoin ETF IBIT, which has seen net inflows exceeding $31.6 billion.
BlackRock funds increase Bitcoin investment through IBIT
In the third quarter ending September 30, 2024, two BlackRock funds significantly increased their holdings by purchasing millions of shares of the Bitcoin ETF.
The BlackRock Strategic Income Opportunities Fund (BSIIX), managing $39 billion in assets, increased its holdings by 2 million shares of IBIT in the quarter ending September 30. This brought its total IBIT holdings to 2,140,095 shares, valued at approximately $118 million.
Similarly, the BlackRock Strategic Global Bond Fund (MAWIX), managing $816 million in assets, acquired 24,000 shares of IBIT, increasing its holdings to 40,682 shares, currently valued at approximately $2 million.
Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, manages these two funds, indicating that the company is adopting a broader strategy of incorporating cryptocurrency-related assets into traditional portfolios.
As of now, IBIT's stock price has soared 61% in the fourth quarter. On Wednesday, November 27, IBIT's stock price closed up 6.44% at $55.03. Since its inception in January 2024, it has risen by as much as 106%.
The Bitcoin ETF IBIT is under strong attention from institutional investors
However, the Bitcoin ETF IBIT has always been the preferred choice for various investor groups such as institutional investors, hedge funds, and pension funds. As the price of Bitcoin surged to $100,000, these participants contributed an astonishing $31.6 billion in inflows, with managed assets now exceeding $48 billion.
According to the latest 13F filings, Millennium Management has become the largest holder of IBIT shares, with a total investment of approximately $848 million. Following them is Goldman Sachs, holding $461 million, and Capula Management, holding $308 million in IBIT shares.
These filings highlight the growing interest of institutions in IBIT, indicating strong confidence in cryptocurrency-related investments. Last week, Bitcoin ETF options also made their debut on NASDAQ, with IBIT options trading volume hitting a record high.
Furthermore, the performance of the Bitcoin ETF IBIT far exceeds that of its peers. For instance, according to data from Farside Investors, IBIT's direct competitor Fidelity FBTC has seen inflows exceeding $10 billion, accounting for nearly one-third of total inflows, while IBIT's inflows stand at $31 billion.
However, in the past two days, inflows have dried up as the BTC price faced resistance at the $100,000 level. BlackRock's IBIT recorded zero inflows for two consecutive days. As of the time of writing, the BTC price is up 1.42% to $96,358, with a market capitalization exceeding $19.06 billion.
