Why is BlackRock betting on Bitcoin Trust?

Hello everyone! BlackRock recently increased its holdings of iShares Bitcoin Trust (IBIT) shares through two funds, with a total value of US$78 million. This move has attracted the market's attention to Bitcoin as a mainstream asset.

1. Details of the increase

BlackRock Strategic Income Opportunities Fund (BSIIX) holds 2.14 million shares of IBIT, worth US$77 million; Strategic Global Bond Fund (MAWIX) holds more than 40,000 shares, worth US$1.4 million. BlackRock has deployed Bitcoin through multiple strategies, showing its long-term confidence in this asset.

2. The rise of IBIT

Since trading in January, IBIT has managed assets of US$48 billion, surpassing the US$33 billion of the Gold Trust Fund (IAU). Bitcoin is gradually consolidating its position as "digital gold" and attracting more institutional investors.

3. The influx of institutional investors

Institutions such as Millennium Management and Goldman Sachs have also significantly increased their holdings of IBIT shares, with holdings reaching US$848 million and US$461 million respectively. Institutional participation has improved market maturity and pushed Bitcoin towards mainstream assets.

4. Comparison between Bitcoin and Gold

BlackRock's increase in IBIT holdings may indicate that it is more optimistic about Bitcoin's performance in the future economy. Bitcoin's scarcity and decentralization make it a potential tool for hedging inflation and uncertainty.

Summary and thinking:

BlackRock's increase in holdings is a recognition of Bitcoin as a mainstream asset. In the future, whether Bitcoin can continue to grow will depend on changes in the economic environment and regulatory policies.

1. Will BlackRock's increase in holdings trigger more institutions to follow up?

2. Can Bitcoin replace gold as a long-term safe-haven tool?