BlackRock’s Bitcoin ETP Acquisition Could Skyrocket Prices

by / ⠀News / March 13, 2024
Bitcoin ETP Acquisition

BlackRock, the global asset manager, might lead Bitcoin’s price to escalate beyond the current $138,000 mark should it proceed with plans to procure Bitcoin exchange-traded products (ETPs), according to the prominent cryptocurrency analyst, Scott Melker. The decision, if made, may result in a massive influx of liquidity and drive Bitcoin’s value upwards significantly.

Potential effects of these plans could impact BlackRock’s Global Allocation Fund and Strategic Income Opportunities Fund, with assets worth $18 billion and $36.7 billion respectively. Considering the substantial allocations, the ramifications of this change could be profound. Fund managers play a crucial role here, their decisions can either harmonize with or differ from the initial investment goals, thereby affecting the funds’ risk scenarios. Hence, continuous and careful observation of progress is suggested for investors.

Notably, financial institutions like Fidelity, Merrill, and BlackRock might require to incorporate these products on a regular basis to maintain the asset under management (AUM) percentage of their fund, possibly causing a steep climb in Bitcoin’s value. Such an infusion might result in a significant inflow of institutional money into the cryptocurrency market, triggering its widespread acceptance and boosting its credibility as an alternative investment. Broader economic patterns and regulatory decisions might also be shaped as a result.

BlackRock has revealed its intentions to purchase shares of its Bitcoin ETF – the IBIT spot for the Global Allocation Fund, a proposal submitted to the U.S. Securities and Exchange Commission (SEC). The course of action indicates a move towards passive investments in their Bitcoin spot ETF. By purchasing their own shares, it appears that the company has growing confidence in the financial opportunities of its Bitcoin ETF. However, the financial landscape of BlackRock’s Global Allocation Fund would be significantly affected by the proposal’s approval by the SEC, impacting both – the fund’s diversity and overall performance.

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Bitcoin, in recent times, has crossed its previous record, exceeding $69,000. Melker suggests that this surge could be catalyzed by BlackRock’s proposed project. The potential collaboration might enable Bitcoin’s price to break the $138,000 barrier and possibly even double within a brief period ranging from 18 days to a few months.

Melker, known for his cryptocurrency trading and investment expertise, has gained attention from well-known media platforms like Fox Business, The New York Times, Business Insider, and The Wall Street Journal. Presently, the price of Bitcoin is approximately $71,700, revealing a significant 10% increase over the past week.

About The Author

Kimberly Zhang

Editor in Chief of Under30CEO. I have a passion for helping educate the next generation of leaders.

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