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Asset management giant BlackRock says it is seeing growing interest in Bitcoin ETFs from institutional players such as sovereign wealth funds and pension funds.
This follows the extremely 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 wealth funds, pension funds and endowments” are coming #Bitcoin
Institutions are coming in big 🚀 pic.twitter.com/GLcpMJYkYz
– Bitcoin Magazine (@BitcoinMagazine) May 2, 2024
The US spot Bitcoin ETF market will explode in 2024, surpassing $200 billion in volume since its launch. Recent 13F filings have shown that major institutional buyers are making small allocations to these newly regulated Bitcoin products.
Today, despite a recent slowdown and outflows from Bitcoin ETFs amid market volatility, BlackRock remains optimistic about long-term institutional demand. The company's head of digital assets, Robert Mitchnick, 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 been having educational conversations with these institutions about Bitcoin for years. The asset manager remains unfazed even after iShares IBIT saw its first outflows this week following 71 consecutive days of inflows.
Mitchnick believes the current lull will be followed by a new wave of buying from deep-pocketed institutional players. As more and more giants like BlackRock build up multi-billion dollar Bitcoin reserves, this validates Bitcoin as an investable asset class.
The ETF conversations also come as BlackRock CEO Larry Fink has softened his once-critical stance on Bitcoin.
With the IBIT iShares quickly accumulating over $17 billion in Bitcoin, BlackRock has proven the enormous latent demand for regulated Bitcoin investment vehicles.
Despite short-term ETF outflows amid volatility, its long-term outlook remains very optimistic.
As Mitchnick said: “A lot of these interested companies – whether they're pensions, endowments, sovereign wealth funds, insurers, other asset managers, family offices – are conducting ongoing discussions around diligence and research, and we play a role from an educational perspective.
Overall, such educated and pragmatic institutional interest bodes well for the continued growth of the Bitcoin ETF market.
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