BlackRock has paused meetings with some portfolio firms following the latest SEC reporting guidelines. Bitwise Bitcoin ETF’s performance coincides with BTC’s price drop.
Will the New SEC Reporting Rules Affect BlackRock?
The largest asset manager in the world, BlackRock, has temporarily suspended meetings with a few of the companies in its portfolio. The company is investigating the effects of the new reporting guidelines established by the US Securities and Exchange Commission (SEC).
The latest SEC reporting guidelines will affect BlackRock and other large US asset managers. It requires fund companies to provide more significant details about ownership statements.
This is especially important since big companies influence asset managers on specific matters of ESG (environment, social, and governance). BlackRock manages $11.5 trillion in assets as of 2024.
Analysts believe the SEC’s increased attention to fund providers’ reporting of ESG-related activity is the reason behind the company’s latest meeting pause.
BlackRock’s Bitcoin ETF Not Likely to Become A Champion Asset Soon – Bloomberg Analyst
Bloomberg senior ETF analyst Eric Balchunas has responded to X user stating that he did not think BlackRock’s spot Bitcoin (BTC) ETF (IBIT) would outperform the Vanguard S&P 500 ETF (VOO) or SPDR S&P 500 ETF Trust (SPY). The Bloomberg ETF analyst tweeted that the asset value of VOO has surpassed that of SPY.
The assets held by VOO total $631,876 million, whereas SPY is valued at $630,394 million. Balchunas acknowledged that BlackRock’s IBIT successfully reached $50 billion in BTC in the first year of launch, making it one to observe.
Also read:However, IBIT would require much more adoption to rival the other VOO and SPY. He added that the BTC must break its correlation with the stock market for IBIT to rise and outperform those two.
Saylor-owned Strategy Halts Bitcoin Purchases
Meanwhile, Michael Saylor, founder of Strategy (previously MicroStrategy), clarified via X that the firm did not issue any class A common stock last week as part of its at-the-market share offering program. Since there was no stock sale, Strategy didn’t purchase additional Bitcoin.
As of Feb. 17, the corporation possesses 478,740 BTCs purchased for around $31.1B at roughly $65,000 per BTC. Following the company’s rebranding from MicroStrategy into Strategy, its logo now contains a Bitcoin emblem with its four vertical strokes.
Saylor emphasized the company’s intention to concentrate on its BTC strategy, which was established in August 2020. Earlier in the week, Saylor posted 21 essential guidelines for true Bitcoiners. Two stood out: buy BTC with funds you can’t bear to lose, and you shouldn’t sell your BTC.
Bitwise Bitcoin ETF Records $112.7M in Outflows
The outflow of $112.7M from the Bitwise Bitcoin ETF indicates possible changes in investor bias. The fund is essential to the Bitcoin ecosystem, as it donates 10% of its earnings to BTC developers.
The withdrawals coincided with changes in Bitcoin’s price and trade volume. Before the withdrawal, the exchange-traded fund (ETF) had $1.2 billion in total AUM (assets under management).
This outflow within this short period raises the possibility of shifts in market confidence. Macroeconomic factors, regulatory updates, or events unique to Bitcoin may have driven these significant fund movements.
BTC’s Price Falls 2.3%
Within two hours of the withdrawal, the price of Bitcoin dropped 2.3%. This decline suggests that the movement of funds from the ETF and the market performance of Bitcoin are directly correlated.
During the same period, BTC trade volumes increased by 15% on major exchanges like Binance and Coinbase, hitting 1.2 million BTC. Similarly, the BTC/ETH price decreased by 2.1%.
These price swings demonstrate the interdependence between BTC ETFs and the broader cryptocurrency sector. Increased activity indicates that traders quickly adjusted their positions in response to the ETF’s performance.
The Bitwise BTC ETF’s (BITB) value dropped 3.3%, closing at $51.25. According to CoinGlass statistics, 1,472,702 shares were traded during the trading session, indicating high investor participation.
The price fluctuated between $50.77 and $52.60, indicating short-term volatility driven by general economic variables and BTC price trends. The price of BITB has fluctuated significantly over the last year, reaching a $59.07 high and a $27.02 low.
This volatility shows the sensitivity of the ETF to regulation changes, investor sentiment in the cryptocurrency space, and the performance of BTC.
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