Wealth management giant BlackRock said it is seeing increased interest in. Bitcoin ETF From institutional investors such as sovereign wealth funds and pension funds.
This follows the highly successful debut of BlackRock’s Bitcoin ETF, iShares IBIT, which was approved by the Securities and Exchange Commission earlier this year.
BREAKING: BlackRock says ‘sovereign funds, pension funds and donations’ are coming #bitcoin
Educational institutions have a huge opportunity 🚀 pic.twitter.com/GLcpMJYkYz
— Bitcoin Magazine (@BitcoinMagazine) May 2, 2024
The U.S. spot Bitcoin ETF market will grow explosively in 2024, with trading volume exceeding $200 billion since its launch.Recent 13th floor filings showed Large institutional investors have small allocations to these newly regulated Bitcoin products.
Now, despite the recent cooling amid market volatility and outflows from Bitcoin ETFs, BlackRock remains bullish on institutional demand over the long term. Robert Mitchnick, head of digital assets at the firm, said in an interview that he expects sovereign wealth funds, pensions and endowments to begin trading spot Bitcoin ETFs in the coming months.
Mitchnick said BlackRock has had educational conversations about Bitcoin with these institutions for years. Asset managers remain unfazed after iShares IBIT recorded outflows for the first time this week, following 71 consecutive days of inflows.
Mitchnick believes the current lull will be followed by a new wave of buying by deep-pocketed institutional investors. Bitcoin is gaining acceptance as an investable asset class as giants like BlackRock build up billions of dollars in Bitcoin reserves.
The ETF buzz also comes as BlackRock CEO Larry Fink has softened his once-critical stance on Bitcoin.
With iShares IBIT rapidly amassing over $17 billion in Bitcoin, BlackRock has proven the huge potential demand for a regulated Bitcoin investment vehicle.
Despite short-term ETF outflows amid volatility, its long-term outlook remains very optimistic.
As Mitchnick noted, “Many of the interested companies, including pensions, endowments, sovereign wealth funds, insurance companies, other asset managers, and family offices, are engaged in ongoing efforts and research discussions. We have an educational perspective.
Overall, this kind of informed and pragmatic institutional interest bodes well for the continued growth of the Bitcoin ETF market.
