BlackRock Purchases 703.7 Bitcoin Despite Bearish Market

BlackRock has taken a significant step by buying 703.7 BTC for about $79 million through its iShares Bitcoin Trust (IBIT). According to SoSoValue data, this purchase occurs amid a period when the crypto market is experiencing a decline.

BlackRock Files for Yield-Generating Bitcoin ETF

With the current market ups and downs, BlackRock continues to buy Bitcoin (BTC), reflecting its strong belief in Bitcoin’s long-term value. The company remains confident that Bitcoin can be a valuable part of a well-balanced investment portfolio.

Notably, BlackRock has also filed to create a new product called the iShares Bitcoin Premium exchange-traded funds (ETFs). This ETF is designed to generate income through covered call strategies. 

The covered calls approach is a strategy where one owns Bitcoin or related assets and sells call options to earn income. This approach is often used in stock markets to increase earnings and lower risks. BlackRock, using this approach, offers a new way to invest in cryptocurrency. 

By launching this ETF, BlackRock also aims to position Bitcoin as a more accepted asset for generating income. The fund helps investors potentially gain from Bitcoin’s price increases while reducing the risk of losses, which is important for individual and institutional investors.

BlackRock IBIT Takes the Spotlight

In May, Bitcoin exchange-traded funds in the United States reached their highest trading volume. In just one week, these ETFs pulled in $25 billion. Interestingly, BlackRock IBIT led this rise, making big moves in both inflows and popularity.

BlackRock’s IBIT saw 30 days straight with no outflows and brought in $9 billion. This significant influx positioned the fund among the top five ETFs in the United States this year. The fund also ranked 47th overall in the global digital investment market.

Recall that the Securities and Exchange Commission (SEC) approved a tenfold increase in options position limits for all ETFs with options. The SEC raised the cap from 25,000 to 250,000 contracts per ETF. It is worth noting that this move directly benefits funds like IBIT but excludes the Fidelity Wise Origin Bitcoin Fund (FBTC). 

BlackRock Isn’t Playing Games

Last month, the global investment management corporation added more Ethereum (ETH) to its holdings. This is a strong signal and indicates the asset manager’s trust in the top altcoin.

BlackRock’s recent move is not a surprise. The company has been bullish on crypto since launching its spot Bitcoin ETF. Now, it is shifting attention to ETH, which is the leading altcoin in the cryptocurrency market.

The firm’s ETH ETF, filed earlier this year, is likely pushing this move. More ETH means more support for Ethereum’s overall value. The best part is that, from all indications, BlackRock believes ETH will keep gaining value, as the plan is to further commit.