BlackRock seeks to buy more Bitcoin ETFs for its Strategic Income Opportunities Fund [SIO]. In a new filing made with the SEC, the leading AUM stated that through SIO, it aims to offer investors appealing earnings, returns, and substantial diversification for their investment portfolio.
The Fund may acquire shares in exchange-traded products [“ETPs”] that seek to reflect generally the performance of the price of BTC by directly holding BTC [“Bitcoin ETPs”], including shares of a Bitcoin ETP sponsored by an affiliate of BlackRock.
Last week, the Bitcoin ETF market notched some major milestones after initial hiccups, with $631 million inflows. Notably, the BlackRock ETF IBIT took the spotlight away from others, with a one-day net inflow of $493 forming a major part of the daily influx. A few days ago, total BTC ETF trading volume surpassed $4 billion two times in a row, reaching $5.4 billion. This is the second-largest trading day since the launch. BlackRock’s TV for its ETF reached $2.41 billion.
In related news, Bitcoin continues to garner attention with Blackrock’s 28% proposal. According to recent reports, the leading AUM, buoyed by investors’ unexpected surge of interest, showcased its BTC ETF, IBIT. Prominent investor Fred Krueger shared insights from the event on the X social media platform, igniting discussions across the industry.
BlackRock’s Bold Bitcoin Bet
As reported by TronWeekly, a market analyst presented a rationale for incorporating Bitcoin into portfolios, particularly appealing to more conservative institutional investors. The suggestion of a 28% allocation to Bitcoin has since become a hot topic among industry insiders, sparking both excitement and skepticism.
While the proposal was met with enthusiasm, Bloomsberg analyst Eric Balchunas has raised doubts about its feasibility. Balchunas questioned the legitimacy of the claim, suggesting that even with Blackrock’s commitment to their BTC ETF, such a high allocation seems excessively far-fetched.
In response to skepticism, Steven Lubka, managing director at Swan, clarified that the recommendation was not an active strategy in Blackrock’s funds but rather a theoretical suggestion by a quant, considered “not unreasonable.” Lubka also cited a peer-reviewed paper published by Blackrock advocating for a high BTC allocation from a mathematical standpoint, adding weight to the surprising figure.