BlackRock, the world’s largest asset management firm, is accelerating its entry into Bitcoin as the cryptocurrency continues to surge. On Monday, BlackRock submitted an amended filing to the U.S. Securities and Exchange Commission (SEC) seeking to include Bitcoin ETF exposure in its Strategic Income Opportunities Fund (BSIIX).
According to the SEC regulatory filing, BlackRock has already submitted the amendment after the U.S. stock market closed on Monday, requesting to incorporate Bitcoin exposure into its Strategic Income Opportunities Fund (BSIIX) portfolio. As of March 1st, BlackRock’s Strategic Income Opportunities Fund (BSIIX) had $36.5 billion in assets under management, with $24.2 billion in net assets in equity. The fund typically invests in fixed-income securities and other market sectors under certain conditions.
BlackRock stated in the filing that BSIIX is expected to enter the Bitcoin ETF market. This means that BSIIX may purchase Bitcoin ETPs issued by BlackRock subsidiaries, such as the iShares Bitcoin Trust (IBIT), which was approved for listing in January. BlackRock may also consider purchasing other recently approved Bitcoin ETFs.
BlackRock’s move to include Bitcoin ETPs in its portfolio indicates that the financial industry is increasingly willing to explore the potential of cryptocurrencies. Recently, traditional financial institutions such as Bank of America and Wells Fargo have softened their stance on Bitcoin and are considering allowing customers to invest in Bitcoin ETFs.
BlackRock has been making frequent moves in the cryptocurrency space. Since its listing in January, the iShares Bitcoin Trust (IBIT) has become the second-largest Bitcoin ETF in terms of assets under management, following Grayscale’s GBTC. According to Bloomberg ETF analyst Eric Balchunas, IBIT’s trading volume reached $2.4 billion on March 4th, making it the top-performing ETF in terms of trading volume. Its assets under management have exceeded $11 billion and have risen by over 30% in just six days.
In addition to the U.S. market, BlackRock has also entered the Brazilian market. On February 29th, BlackRock announced its collaboration with the Brazilian stock exchange B3 to launch the Brazilian Depositary Receipts (BDR) for IBIT, which is the first cryptocurrency ETF introduced by BlackRock in Brazil.
BlackRock CEO Larry Fink previously stated in January that tokenization of assets would be the next step for BlackRock after the launch of Bitcoin ETFs. In his view, tokenization can address all the issues surrounding bonds, stocks, and digital illicit activities. Most importantly, it allows for the customization of investment strategies for individuals.
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– Grayscale dumps, is BlackRock full? How much money has flowed into the cryptocurrency market after the Bitcoin ETF approval?
– JPMorgan: Grayscale’s GBTC has lower liquidity than BlackRock and Fidelity’s Bitcoin ETFs.
– Real-time status of Bitcoin ETF: BlackRock’s trading volume surpasses Grayscale for the second time, GBTC sell-off has dropped by 50%.