BlackRock Asset Management says there is growing interest among investors for its asset management services Bitcoin ETFs Institutional players such as sovereign wealth funds, pension funds and other funds.
The Securities and Exchange Commission approved BlackRock’s Bitcoin-based ETF iShares BIT earlier in the year.
Blackrock announces a new investment strategy “Sovereign wealth funds, pension funds and endowments” The upcoming event is the #Bitcoin
The Institutions Are Coming Big!🚀 pic.twitter.com/GLcpMJYkYz
— Bitcoin Magazine (@BitcoinMagazine) May 2, 2024
In 2024 the U.S. Bitcoin ETF Market has grown exponentially, with a volume of over $200 billion since its inception. Recent 13F Filings have shown Major institutional buyers are making smaller allocations of Bitcoin to the newly regulated products.
BlackRock continues to be bullish long-term on the institutional demand for Bitcoin, despite recent market volatility and a cooling off of Bitcoin ETFs. Robert Mitchnick is the head of BlackRock’s digital assets. He said in an article that sovereign wealth, pensions and endowments will start to trade spot Bitcoin ETFs within months.
Mitchnick claimed that BlackRock and these institutions have been engaging in education conversations about Bitcoin over the past years. Asset manager BlackRock is not worried about iShares IBIT’s first ever outflows after 71 days of continuous inflows.
Mitchnick is confident that the current period of lull in buying will soon be replaced by another wave from institutional investors with deep pockets. Bitcoin is becoming a more viable asset class as giants such as BlackRock continue to build up multi-billion dollar Bitcoin reserve.
BlackRock’s CEO Larry Fink, who was once very critical of Bitcoin, has also softened his stance.
BlackRock’s iShares IBIT has quickly accumulated over $17 billion worth of Bitcoin. This shows the huge latent demand that exists for regulated Bitcoin investments vehicles.
The outlook for the ETFs is still very positive, despite short-term outflows due to volatility.
As Mitchnick stated, “Many of these interested firms – whether we’re talking about pensions, endowments, sovereign wealth funds, insurers, other asset managers, family offices – are having ongoing diligence and research conversations, and we’re playing a role from an education perspective.”
Overall, this educated and pragmatic interest from institutions bodes well to the growth of the Bitcoin ETF Market.
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Source: bitcoinmagazine.com