In a recent filing with the U.S. Securities and Exchange Commission (SEC), the BlackRock Global Allocation Fund revealed As of April 30, he held 43,000 shares in asset manager iShares Bitcoin Trust Bitcoin ETF.
The announcement follows two previous filings by BlackRock on May 28 that disclosed the fund’s exposure to bitcoin across its Strategic Global Bond Fund and Strategic Income Opportunities Portfolio.
BlackRock Bitcoin ETF Investment Plan
The investment giant’s push towards Bitcoin integration became evident in March, when it he filed a report 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 hold BTC directly in order to mirror the performance of the digital currency market.
The company’s filing specifies that the Global Allocation Fund may acquire shares in exchange-traded products (ETPs) that are intended to reflect the price of Bitcoin by directly owning the cryptocurrency. However, it was clarified that investments in Bitcoin ETP will be narrow to companies listed and traded on recognized national stock exchanges.
The initiative fits into BlackRock’s broader investment strategy with its Global Allocation Fund, an investment fund that aims to diversify investors across a wide range of assets, including stocks, bonds and potentially a Bitcoin ETP.
With the amount of $17.8 billion assets under management (AUM) and an annualized rate of return of 4.61% as of March 2024, the fund aims to capitalize on global investment opportunities while effectively managing risk and pursuing long-term capital growth and income.
This is the third internal BlackRock fund to invest in Bitcoin via the iShares Bitcoin Trust (IBIT) ETF. The Strategic Global Bond Fund, Strategic Income Opportunities Portfolio, and now the Global Allocation Fund have all recognized Bitcoin’s potential as an investment asset.
Bitcoin price analysis
Bitcoin has shown resilience over the past 24 hours, recovering to $61,780 after falling to as low as $58,000 on Monday. This rebound suggests that the leading cryptocurrency is holding up sales pressure encountered over the past week, which indicates a potential continuation of the paused uptrend.
According to According to technical analyst Ali Martinez, Bitcoin is forming an Adam and Eve formation that could lead to a projected 6% rally towards $66,000 if BTC maintains a candle close above the $62,200 level.
Moreover, historical data shows that July has always been favorable for Bitcoin price growth, especially in years when Halving took place.
Analyzing the above picture, 7 of the previous 11 months of July have yielded positive gains. The green months, in particular, generated an impressive 16.52% gain, while the red months experienced a 6.99% decline.
Test efficiency Bitcoin in the third quarter (Q3), data paints a more balanced picture. Of the previous 11 Q3 periods, 5 were positive. Green Q3s, on average, generated a significant escalate of 33.52%, while red Q3s generated an average decrease of 16.023%.
The question remains whether historical price performance will repeat itself, leading to an escalate in BTC prices. If history were to repeat itself in this scenario, it could potentially result in Bitcoin retesting its all-time high that reached $73,700 in March, potentially even surpassing it.
Featured image from DALL-E, chart from TradingView.com
