BlackRock boosts Bitcoin ETF holdings in Strategic Global Bond Fund

BlackRock has increased its Bitcoin ETF holdings, adding 4,000 shares of the iShares Bitcoin Trust (IBIT) to its Strategic Global Bond Fund.

As of June 30, 2024, the fund holds a total of 16,000 IBIT shares, up from 12,000 shares reported at the end of May.

This increase reflects a growing institutional interest in Bitcoin and a rising confidence in Bitcoin-based exchange-traded funds (ETFs) among major asset managers.

A recent filing revealed BlackRock’s updated portfolio, showcasing the company’s strategic move to deepen its exposure to Bitcoin through its bond fund.

The increase in IBIT shares aligns with a broader market trend where institutional investors are incorporating more Bitcoin ETFs into their portfolios.

BlackRock’s decision to expand its Bitcoin holdings is part of a larger momentum for Bitcoin ETFs globally, with financial institutions aiming to diversify and meet the rising demand for cryptocurrency exposure.

A post from MacroScope on X highlighted the portfolio update: "BlackRock today filed an updated portfolio disclosure for its Strategic Global Bond Fund: 16,000 shares of iShares Bitcoin Trust held as of June 30, up from 12,000 shares reported in May.”

The growing institutional adoption of Bitcoin ETFs is evident not only in the U.S. but also in other markets like Hong Kong, where Bitcoin ETF assets under management have surged.

This increased allocation by BlackRock indicates that large financial institutions are recognising the potential of cryptocurrencies to diversify investment portfolios and act as a hedge against market volatility.

BlackRock’s Strategic Global Bond Fund’s move to add more Bitcoin ETF shares mirrors the broader trend of institutional investors seeking to capitalise on the cryptocurrency market’s potential.

Bitcoin’s recent price rally, approaching $60,000, has further fueled interest from financial firms looking to take advantage of the cryptocurrency’s growth.

The broader Bitcoin ETF market has seen significant inflows, with multiple issuers reporting increased holdings, underscoring strong investor demand.

Recent data shows that BlackRock has now surpassed Grayscale in total cryptocurrency holdings, with a valuation of approximately $22.14 billion, compared to Grayscale’s $21.99 billion.

The rise in Bitcoin ETF assets under management, particularly in markets like Hong Kong where spot Bitcoin ETFs were recently approved, highlights the expanding role of cryptocurrency in traditional investment portfolios.

BlackRock’s increased Bitcoin ETF holdings come amid renewed optimism in the cryptocurrency market, with Bitcoin’s (CRYPTO:BTC) rally sparking interest in both Bitcoin and related altcoins, especially those connected to major institutional investors like BlackRock.

At the time of reporting, Bitcoin price was $62,884.86.