Prolly nothing... https://www.crypto-news-flash.com/b...on-fund-trillions-of-to-flow-into-the-market/ BREAKING: Blackrock adds Bitcoin to their $15TR Global Allocation Fund, trillions of $ to flow the market By John Kiguru 6. January 2023 The American investment firm, BlackRock has added Bitcoin to its $15 trillion Global Allocation Fund. With this move, BlackRock can scoop up all BTC on exchanges with just 0.32% of the assets it has under management. American multinational investment management company, BlackRock has allegedly added Bitcoin (BTC), the world’s largest digital currency by market capitalization to its Global Allocation Fund. As the world’s biggest investment firm with over $10 trillion in assets under management (AUM) as of January 2022, the Bitcoin addition to the firm’s primary fund is considered a very bullish move for the crypto industry. Bitcoin has thrived over the years as the pioneering cryptocurrency and since its inception about 14 years ago, it has notably gained the interest of institutional investors today. While the charge by Wall Street into Bitcoin can be attributed to MicroStrategy Incorporated, a business intelligence and software firm with over 132,500 Bitcoin units, BlackRock has also made some significant moves to solidify its growing interests in the nascent asset class and sector. As reported by CNF, the New York-based firm partnered with publicly traded exchange Coinbase Global Inc back in August last year to offer institutional investors a direct avenue to invest in Bitcoin. The company has made some follow-up moves and launched a spot Bitcoin private trust for its high-profile clients shortly after the Coinbase deal. The addition of Bitcoin to its Global Allocation Fund is considered a bigger game changer as it implies the firm could invest directly into the premier cryptocurrency. Considering its last reported asset base, BlackRock will need just about 0.32 percent of the funds in its custody to scoop up all the Bitcoin available on exchanges. According to speculations by the crypto analyst, the Wolf of Alts $treet, the total Bitcoin on all centralized exchanges (CEXs) is currently pegged at about 1,856,625.8. This figure is valued at around $31.1 billion when computed with the current price of BTC around $16,000. In his analysis, $32 billion is just around 0.32 percent of the $10 trillion in custody by BlackRock. A Bullish Reality For the past year, Bitcoin and the broader crypto ecosystem have been waiting for a significant fundamental push that may signal an end to the current crypto winter. The push made by BlackRock to add Bitcoin to its Global Allocation Fund is perhaps one of the most prominent bullish realities the industry is starting the year out with. While BlackRock is definitely going to be conservative with its allocations to Bitcoin, its investments in the coin are largely going to be very significant, and thus, likely impact the coin’s price growth. Over the course of the next few months, we are likely to see trillions of dollars flow into the market as other big investment management companies may also choose to follow in the footsteps of BlackRock to go more bullish on Bitcoin. These events can fuel a run in the price of BTC and a visible rub-off may be seen for altcoins as well.
The more institutional ownership of Bitcoin the less chance it has of ever going to the moon ($1 million) This can be seen over the years, in the early years bitcoin had no or low institutional ownership and had huge returns. These days it trades more like a tech stock.
Cheesy title. For there to be trillions of flow into BTC Blackrock would have put in over 10% of their AUM, not going to happen. This is an opportunity for somebody else to withdraw. Wouldn't surprise me if it works in a prompt sell-the-news fashion.
GBTC trades at a 45% discount to NAV. https://ycharts.com/companies/GBTC/discount_or_premium_to_nav Interest in Bitcoin has died. Failed as an inflation hedge. No one uses it as a means of exchange. Failed as a store of value. It just wastes energy and serves as an instrument for gambling. That said, if interest rates go back to negative and Fed restarts QE, I can see it going higher same with all speculative assets. In that case, GBTC might not be a bad way to play it.
So Blackrock pushed and pushed ESG, but now are swinging anti-woke? I bet they still will keep pushing the ESG bubble for profits though.