BlackRock's income and bond funds invest in their own spot Bitcoin ETF, according to first-quarter regulatory filings.
The Strategic Income Opportunities Fund acquires $3.56 million in iShares Bitcoin Trust shares. The Strategic Global Bond Fund purchases $485,000 worth of the same ETF. These investments are minor compared to the total assets of the funds, valued at $37.4 billion and $776.4 million, respectively.
The BlackRock Strategic Income Opportunities Fund’s purchase of 88,000 IBIT shares. Source: SEC
iShares Bitcoin Trust holds $19.61 billion in Bitcoin as of May 24. This positions it just behind the Grayscale Bitcoin Trust, which has $19.76 billion.
Globally, spot Bitcoin ETFs now control over 1 million Bitcoin, representing nearly 5.10% of the total circulating supply. Over 600 U.S. investment firms have bought into these ETFs since their January launch.
Significant investors include Morgan Stanley, JPMorgan, Wells Fargo, and Royal Bank of Canada. Hedge funds like Millennium Management and Schonfeld Strategic Advisors are also major purchasers. Millennium Management is the largest investor, with $1.9 billion in spot Bitcoin ETFs, including substantial holdings in iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund.
On May 23, BlackRock's bid for a spot Ether ETF was approved, pending SEC approval of their Form S-1 filings for trading to commence.
BlackRock’s funds buy shares of their Bitcoin ETF, indicating growing institutional interest in digital assets.