BlackRock Files for More Bitcoin Exposure via $36B Fund

BlackRock, the largest global asset manager, plans to increase its Bitcoin exposure through its $36 billion Strategic Income Opportunities Fund by purchasing more Bitcoin ETFs.

Nattynatman

Posted on Mar 5, 2024

BlackRock, the world's largest asset manager with $10 trillion in assets, has made a significant move in the crypto market. The firm, with its Strategic Income Opportunities Fund valued at $36 billion, has filed to purchase more Bitcoin exchange-traded funds (ETFs), signalling its intent to increase exposure to the digital asset.

This decision comes amid a surge in popularity for Bitcoin ETFs, particularly after the approval of a Spot Bitcoin ETF on January 10th earlier this year.

BlackRock's ETFs have been outperforming others in trading volume, commanding nearly 50% of the total Bitcoin ETF trading volume daily. Recent statistics indicate a substantial flow of funds into Bitcoin, with BlackRock's volume hitting $2.4 billion, recording the second largest day of trading volume since launch.

https://twitter.com/WatcherGuru/status/1764758662772412660

The timing of this move is notable, coinciding with Bitcoin's rise to $68,000 in USD terms, already surpassing its previous all-time highs in EUR and AUD terms. BlackRock's contributions have played a significant role in propelling the price of Bitcoin to these levels, establishing the multinational firm as a key player in the crypto market.

https://twitter.com/tryPluid/status/1764645468804714681

In a filing with the Securities and Exchange Commission (SEC), BlackRock outlined its intention to acquire shares in Bitcoin exchange-traded products (ETPs), including those directly holding Bitcoin. This move aligns with the investment strategy of the Strategic Income Opportunities Fund, a flexible bond strategy designed to offer investors attractive returns and portfolio diversification.

As of December 31, 2023, the fund's allocation reflects its commitment to a diverse investment approach. With BlackRock already holding more than $11 billion in Bitcoin, this move further solidifies its position in the crypto market and serves as a signal for other global fund managers to consider Bitcoin exposure.

https://www.blackrock.com/us/individual/literature/product-brief/strategic-income-opportunities-fund-essentials-one-pager.pdf

With the anticipation surrounding prospective new Bitcoin ETFs, BlackRock aims to enhance the Strategic Income Opportunities Fund, providing its clients with a stronger investment product in the ever-evolving landscape of digital assets.