BlackRock Adds Bitcoin to its Global Allocation Fund

BlackRock is studying bitcoin
  • American investment firm BlackRock added Bitcoin to its $15 trillion Global Allocation Fund.
  • BlackRock can get all the BTC from exchanges with just 0.32% of the assets it has under management.
  • BlackRock’s moves are likely to have an impact on the coin’s price growth. 

US multinational investment management company BlackRock has added the largest digital currency by market capitalization to its Global Allocation Fund. As the world’s largest investment firm with over $10 trillion in assets under management (AUM), the addition of Bitcoin (BTC) to the firm’s main fund is seen as a major bullish move for the crypto industry.

Bitcoin has developed as the pioneer cryptocurrency since its inception 14 years ago, currently, it has gained the interest of institutional investors. Wall Street’s foray into Bitcoin can be attributed to MicroStrategy Incorporated, a software and business intelligence company with more than 132,500 Bitcoin units.

Blackrock partnered with Coinbase Global Inc in August of last year to offer investors a direct avenue to invest in Bitcoin. Shortly after the Coinbase deal, the firm launched a private Bitcoin trust for its high-profile clients.

Considering its latest asset base, BlackRock will only need around 0.32% of the funds in its custody to get all the Bitcoin available on exchanges.

For the past year, Bitcoin and the crypto ecosystem have been waiting for a fundamental boost that could signal the end of the current crypto winter. The movement made by BlackRock is perhaps one of the most important bullish keys with which the industry is starting the year.

Although BlackRock is going to be conservative with its Bitcoin allocations, its investments in the coin are going to be very significant and are likely to have an impact on the price growth of the coin

Over the course of the next few months, trillions of dollars are likely to flow into the market as other investment management firms may also follow in BlackRock’s footsteps. These developments may fuel a bullish rally in BTC and attract altcoins as well.