American multinational investment management company, BlackRock has allegedly added Bitcoin (BTC), the world’s largest digital currency by market capitalization to its Global Allocation Fund. As the world’s biggest investment firm with over $10 trillion in assets under management (AUM) as of January 2022, the Bitcoin addition to the firm’s primary fund is considered a very bullish move for the crypto industry.
BlackRock starts to add $BTC to their own Global Allocation Fund for passive investors 👀
Its estimated that only 0.32% of their investment fund is enough to buy all #Bitcoin kept on exchanges
Still want to short?
👇
1/5
— 🐺 the Wolf of Alts $treet (@beastincrypto) January 5, 2023
Bitcoin has thrived over the years as the pioneering cryptocurrency and since its inception about 14 years ago, it has notably gained the interest of institutional investors today. While the charge by Wall Street into Bitcoin can be attributed to MicroStrategy Incorporated, a business intelligence and software firm with over 132,500 Bitcoin units, BlackRock has also made some significant moves to solidify its growing interests in the nascent asset class and sector.
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As reported by CNF, the New York-based firm partnered with publicly traded exchange Coinbase Global Inc back in August last year to offer institutional investors a direct avenue to invest in Bitcoin. The company has made some follow-up moves and launched a spot Bitcoin private trust for its high-profile clients shortly after the Coinbase deal.
The addition of Bitcoin to its Global Allocation Fund is considered a bigger game changer as it implies the firm could invest directly into the premier cryptocurrency. Considering its last reported asset base, BlackRock will need just about 0.32 percent of the funds in its custody to scoop up all the Bitcoin available on exchanges.
According to speculations by the crypto analyst, the Wolf of Alts $treet, the total Bitcoin on all centralized exchanges (CEXs) is currently pegged at about 1,856,625.8. This figure is valued at around $31.1 billion when computed with the current price of BTC around $16,000. In his analysis, $32 billion is just around 0.32 percent of the $10 trillion in custody by BlackRock.
For the past year, Bitcoin and the broader crypto ecosystem have been waiting for a significant fundamental push that may signal an end to the current crypto winter. The push made by BlackRock to add Bitcoin to its Global Allocation Fund is perhaps one of the most prominent bullish realities the industry is starting the year out with.
While BlackRock is definitely going to be conservative with its allocations to Bitcoin, its investments in the coin are largely going to be very significant, and thus, likely impact the coin’s price growth.
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Over the course of the next few months, we are likely to see trillions of dollars flow into the market as other big investment management companies may also choose to follow in the footsteps of BlackRock to go more bullish on Bitcoin. These events can fuel a run in the price of BTC and a visible rub-off may be seen for altcoins as well.
John Kiguru is an astute writer with a great love for cryptocurrency and its underlining technology. All day he is exploring new digital innovations to bring his audience the latest developments.
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