BlackRock Adds 4,000 Bitcoin ETF (IBIT) Shares To Strategic Global Bond Fund

BlackRock has disclosed an updated Strategic Global Bond Fund portfolio, revealing a notable increase in its Bitcoin holdings. As of June 30, 2024, the fund held 16,000 shares of the iShares Bitcoin Trust (IBIT), up from 12,000 shares reported at the end of May.

BlackRock Expands Bitcoin ETF Holdings

According to a recent filing, BlackRock’s Strategic Global Bond Fund has increased its exposure to Bitcoin by adding 4,000 shares of the iShares Bitcoin Trust (IBIT). The updated portfolio disclosure reveals that the fund now holds 16,000 shares as of June 30, 2024, compared to 12,000 shares reported at the end of May. 

This move indicates a growing interest and confidence in Bitcoin-based exchange-traded funds (ETFs) from one of the world’s largest asset managers.

The increase in holdings comes amid a broader market trend in which institutional investors are increasingly integrating Bitcoin ETFs into their portfolios. BlackRock’s decision to expand its position in the iShares Bitcoin Trust aligns with the ongoing momentum for Bitcoin ETFs globally, as financial institutions seek to diversify their offerings and meet rising investor demand for cryptocurrency exposure.

Growing Institutional Interest 

Adding Bitcoin ETF shares by BlackRock reflects a wider trend of growing institutional interest in Bitcoin and digital assets. With the recent surge in Bitcoin’s price, nearly approaching the $60,000 mark, many financial firms seek to capitalize on the market’s potential. 

This trend is not limited to the United States; other markets, including Hong Kong, have also seen significant growth in Bitcoin ETF assets under management, indicating global investor appetite for regulated crypto products.

Furthermore, BlackRock’s increasing allocation to Bitcoin within its Strategic Global Bond Fund suggests that large financial institutions are recognizing the potential of cryptocurrencies to diversify portfolios and hedge against market volatility.

Comparison with Other Bitcoin ETF Inflows

The broader Bitcoin ETF market has seen notable inflows across different issuers. According to data from Farside Investors, multiple Bitcoin ETFs have reported increased holdings, reflecting robust investor demand. As of the latest reports, BlackRock has now surpassed Grayscale in total cryptocurrency holdings, valued at approximately $22.14 billion, compared to Grayscale’s $21.99 billion.

Hong Kong’s recent approval of spot Bitcoin ETFs and the subsequent rise in assets under management to over HK$2 billion further emphasize the growing institutional adoption of Bitcoin ETFs. The steady increase in these regulated products highlights the expanding role of cryptocurrency in traditional investment portfolios.

The increase in Bitcoin ETF holdings by BlackRock comes at a time when the cryptocurrency market is experiencing renewed optimism. Bitcoin’s recent rally towards $63,000 has sparked interest not only in Bitcoin but also in altcoins, particularly those associated with major institutional investors like BlackRock.