Bitcoin ETFs: Blackrock Submits Application For Its Global Allocation Fund
An Indication Of Institutional Adoption?
BlackRock, the world’s largest asset manager, has set its sights on Bitcoin exchange-traded funds (ETFs) and has submitted a filing to the US Securities and Exchange Commission (SEC) to integrate spot Bitcoin ETFs into its investment strategy for the Global Allocation Fund. It is worth noting that the iShares Bitcoin Trust (iBIT), owned by BlackRock, has witnessed a rapid surge in prominence, attracting record inflows and highlighting the growing investor interest in Bitcoin.
Growing Investor Confidence
Like iBIT, Fidelity’s spot Bitcoin ETF (FBTC) has received nearly half a billion dollars in inflows. This significant influx of capital into Fidelity’s ETF underscores the growing investor confidence in Bitcoin as an asset class and further solidifies the role of institutional investors in shaping the cryptocurrency market.
According to data from CryptoQuant, approximately $473 million flowed into Bitcoin ETFs on March 7 alone, with the FBTC accounting for a substantial of it. This influx of capital highlights the increasing institutional appetite for exposure to digital assets.
Matthew Howells-Barby, VP of Growth at Kraken, opined that BlackRock’s decision to integrate Bitcoin ETFs into its Global Allocation Fund would have a structural impact on BTC liquidity.
Analysts’ BTC Price Prediction
Meanwhile, industry analysts forecast that the combination of rising inflows, favorable market indicators, and expected regulatory greenlights for other Bitcoin ETF options could drive BTC’s price to unprecedented levels. The analysts also predict that BTC’s price could soon rally towards or even exceed the $100,000 milestone.
According to network economist Timothy Peterson, the approval of spot Bitcoin ETFs has initiated an accumulation phase that could propel Bitcoin to $100,000 by October 2024. A combination of on-chain, technical, and fundamental elements backs Peterson’s optimistic outlook.
Institutional Interest In Cryptocurrency Markets
As the global economy braces for shifts in monetary policy, the cryptocurrency market continues to experience a surge in institutional adoption, signaling that Bitcoin’s bull run isn’t over yet. Key Bitcoin advocates such as Peter Brandt and Tom Lee foresee Bitcoin’s potential to surpass $150,000 amidst minor price corrections.
The institutional investor confidence is further bolstered by the success of spot Bitcoin ETFs, attracting over $7.4 billion in net inflows within the first seven weeks of trading. Moreover, current macroeconomic outlooks, like anticipated interest rate reductions, fuel investor appetite for alternative assets like Bitcoin.
Other technical factors, such as Ethereum’s upcoming DenCun upgrade, promise increased efficiency and scalability, driving further interest and investment in the crypto ecosystem. With regulatory clarity emerging worldwide, the current Bitcoin bull run positions cryptocurrencies as a viable investment option for institutional and retail investors.
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