[ad_1]
BlackRock, one of the world’s largest asset managers with more than $9 trillion in assets under management, has added a Spot Bitcoin ETF to its Global Allocation Fund (MALOX), according to an SEC filing. By applying to do so, the company is poised to take advantage of the growing interest in Bitcoin. March 7th.
BlackRock aims to invest in spot Bitcoin ETFs that are listed and traded on domestic exchanges, including its own iShares Bitcoin Trust (IBIT) and ETFs issued by other institutions. The move marks a significant development in institutional adoption of Bitcoin.
“The Fund invests in ETPs (ETPs) that generally seek to reflect the performance of Bitcoin prices through direct holdings in Bitcoin, including shares in Bitcoin ETPs sponsored by affiliates of BlackRock. “ETP”),” Brockrock said in a statement.
BlackRock’s growing interest in Bitcoin
The decision to invest in the Spot Bitcoin ETF follows the significant increase in Bitcoin holdings since BlackRock’s IBIT was approved on January 11, 2024.
The fund’s Bitcoin holdings jumped from 2,621 on January 11 to 187,531 as of March 7, representing an increase of over 7,000%. This significant increase in Bitcoin holdings supports BlackRock’s bullish outlook for the digital asset.
BlackRock’s confidence in Bitcoin is further underscored by its belief that the optimal allocation of Bitcoin in a portfolio should be approximately 84.9%. This view is consistent with the growing sentiment among institutional investors that Bitcoin is a store of value and a hedge against inflation.
Uptake by institutional investors and BTC price prediction
The approval of the Spot Bitcoin ETF is expected to further encourage institutional investment in Bitcoin. Ernst & Young estimates that about $200,000 of institutional investors were skeptical of Bitcoin before spot ETFs were given the green light.
If more institutions enter the market, the price of Bitcoin could exceed $600,000, estimates Cathie Wood of Ark Invest.
Approval of a Spot Bitcoin ETF could have a significant impact on the market. Even a modest 0.5% allocation to Bitcoin by $200 trillion of institutional investors could increase Bitcoin’s market cap by more than $1 trillion. This influx of institutional capital could push Bitcoin prices to new all-time highs.
At the time of this writing, Bitcoin is trading at $68,220, indicating a slight pullback from recent record highs. However, with increased institutional investor interest and the approval of a Spot Bitcoin ETF, Bitcoin’s price trajectory remains optimistic and could reach new all-time highs.
[ad_2]
Source link
