In a recent filing with the U.S. Securities and Exchange Commission (SEC), the BlackRock Global Allocation Fund disclosed his ownership of 43,000 shares of the asset manager’s Bitcoin ETF, iShares Bitcoin Trust, on April 30.
This announcement follows two previous filings from BlackRock on May 28, which disclosed the fund’s exposure to Bitcoin in its Strategic Global Bond Fund and Strategic Income Opportunities Portfolio.
BlackRock Bitcoin ETF Investment Plan
The investment giant’s move toward Bitcoin integration became evident in March when submitted a filing to the SEC, expressing its intention to include Bitcoin ETFs in its Global Allocation Fund.
BlackRock’s goal is to invest in Bitcoin ETFs that directly hold BTC, aiming to mirror the performance of the digital currency market.
The company document specified that the Global Allocation Fund can acquire shares in exchange-traded products (ETPs) that seek to reflect the price of Bitcoin while directly holding the cryptocurrency. However, he clarified that investments in Bitcoin ETPs will be limited to those listed and traded on recognized national stock exchanges.
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This initiative is in line with BlackRock’s broader investment strategy for its Global Allocation Fund, a mutual fund designed to diversify investors across a wide range of assets, including stocks, bonds and, potentially, Bitcoin ETPs.
With US$17.8 billion in assets under management (AUM) and a year-to-date return of 4.61% as of March 2024, the fund aims to capitalize on global investment opportunities, while effectively managing risk and seeking long-term capital growth and income.
This marks BlackRock’s third internal fund to invest in Bitcoin through the iShares Bitcoin Trust (IBIT) ETF. The Strategic Global Bond Fund, the Strategic Income Opportunities Portfolio and now the Global Allocation Fund have recognized the potential of Bitcoin as an investment asset.
Bitcoin Price Analysis
Over the past 24 hours, Bitcoin has shown resilience as it reclaimed the $61,780 level after experiencing a dip to $58,000 on Monday. This recovery suggests that the leading cryptocurrency is resisting the selling pressure found last week, indicating a potential continuation of its interrupted uptrend.
According to For technical analyst Ali Martinez, Bitcoin is forming an Adam and Eve bottoming pattern, which could lead to a projected 6% rise to $66,000 if BTC maintains a close candlestick above the $62,200 level.
Furthermore, historical data indicates that July has historically been favorable for Bitcoin price growth, particularly in halving years.
![BlackRock Global Allocation Fund Reveals Large Bitcoin ETF Holding With 43,000 Shares 1 Black stone](https://thegurumedia.com/wp-content/uploads/2024/06/GRFwiY_XcAA0z0s.jpeg)
Looking at the image above, 7 of the previous 11 July months resulted in positive gains. The green months, in particular, generated an impressive 16.52% gain, while the red months saw a 6.99% drop.
Examining the performance of Bitcoin in the third quarter (3rd quarter), the data presents a more balanced picture. Of the 11 previous periods in the third quarter, 5 were positive. The green 3Qs, on average, produced a significant increase of 33.52%, while the red 3Qs generated an average drop of 16.023%.
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It remains to be seen whether historical price performance will be repeated, leading to price gains for BTC. If history were to repeat itself in this scenario, it could potentially result in Bitcoin retesting its all-time high, which reached $73,700 in March, potentially even surpassing it.
Featured image of DALL-E, chart from TradingView.com