BlackRock Explores Crypto Through Bitcoin and Ethereum Exposure

By: Eva Baxter

Asset management giant BlackRock continues its expansion into crypto, seeking to integrate Bitcoin exposure into its Strategic Income Opportunities Fund (BSIIX) as per a recent SEC filing. The fund, whose total size stands at $36.5 billion, is likely to invest in Bitcoin exchange traded products (ETPs) including its in-house affiliate, iShares Bitcoin Trust (IBIT), thereby echoing the financial sector’s growing interest in crypto investment.

The implementation of this novel strategy is seen as an overarching representation of the increased appeal and performance of the fund, offering a fresh investment avenue alongside traditional assets. This development is emblematic of the broader trend of conventional investment firms leaning towards digital assets, balancing the chances of cryptocurrency investment against the regulatory and market risks associated.

Amid rising institutional demand for crypto, BlackRock's existing Bitcoin ETF, IBIT, has become a market leader, holding $10 billion under management with a trading volume of $5.4 billion. Investors' trust in BlackRock has translated into a surge in IBIT's trading volume, highlighting the growing consensus that the crypto, hence IBIT, forms a viable and lucrative part of a diversified investment portfolio.

Simultaneously, echoing Bitcoin ETF’s success, a growing demand is observed for Ethereum-based counterparts, further expanding BlackRock’s foray into the crypto space while signaling a promising future for digital currencies.