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BlackRock Begins Adding BTC Exposure to Strategic Income Portfolio

BlackRock purchases over 3 million IBTC shares with in-house fund

Global investment giant, BlackRock, has begun adding spot bitcoin exchange-traded products (ETPs) to its in-house investment fund, the BlackRock Strategic Income Opportunities fund (BSIIX).

BSIIX Gains Bitcoin Exposure

In a filing today with the US Securities and Exchange Commission (SEC), BlackRock disclosed that it has purchased 88,000 shares of its spot Bitcoin ETF product, iShares Bitcoin Trust, valued at $3,561,360.

According to the asset manager, BSIIX is a flexible bond strategy that allows investors to diversify their portfolios across multiple investment products while offering attractive returns on fixed-income securities. The fund is currently valued at over $35 billion invested in more than 5,000 holdings, including US Treasuries and bonds from other countries, corporate bonds, securitized assets, and more recently, Bitcoin ETF.

By incorporating spot Bitcoin ETFs into BSIIX’s portfolio, BlackRock intends to increase the fund’s appeal to clients, offering investors a contemporary investment vehicle in addition to the traditional assets already available.

Institutional Interest in Bitcoin ETFs Soar

BlackRock hopes to capitalize on the massive attention that Bitcoin ETFs are currently receiving from institutional investors to boost the performance of the Strategic Income Opportunities fund.

Despite the overall volatility and uncertainty that is often attributed to the cryptocurrency market, traditional investment firms are increasingly gaining exposure to Bitcoin through the recently launched ETFs. These funds closely track the performance of bitcoin’s price and allow investors to gain exposure to the asset without directly holding it.

BlackRock’s IBTC is currently the best-performing spot Bitcoin ETF on the market. With over $10 billion in assets under management (AUM), the fund has continued to receive more inflows thanks to BlackRock’s stellar reputation as a global leader in asset management and deep liquidity.

Earlier this month, the State of Wisconsin Investment Board (SWIB) revealed that it holds more than 2.4 million shares of IBTC and over 1 million shares of Grayscale Bitcoin Trust (GBTC).

Several market analysts believe that BlackRock’s move to purchase more BTC using its in-house funds would likely motivate other Wall Street giants to follow suit.

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