BlackRock Advises Shift from Cash to Fixed Income; Bitcoin ETF Gains Momentum
BlackRock's global co-head of Bond ETFs, Steve Laipply, advised in an interview with Yahoo Finance that broader markets should transition from cash to fixed income sources.
Interestingly, Laipply’s remarks could also suggest a growing interest in fixed crypto assets. Interest-bearing cryptocurrency accounts allow holders to earn fixed interest on their idle digital assets, similar to depositing money into a bank account that pays interest, with the only difference being that this service exclusively accepts cryptocurrency deposits.
Laipply suggests investors move from cash to fixed income, noting that investors have withdrawn from the asset class due to the recent Fed tightening cycle. He highlights that it will be “impossible for investors to time rate cuts,” implying that now is the right moment to reallocate to fixed income progressively.
BlackRock’s iShares Bitcoin Trust (IBIT) now holds a $2 billion advantage over Grayscale, potentially surpassing Grayscale as the largest Bitcoin fund worldwide. This follows a 68-day streak of nearly $16 billion in value losses for GBTC, reducing the ETF’s assets to $19.4 billion.
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After 68 days of continuous money absorption, IBIT’s total assets have risen to approximately $17.3 billion. Among all the Bitcoin ETFs authorized by the SEC, Blackrock has consistently proven to be the most successful.
With 239,252 BTC held overall, the BlackRock iShares Bitcoin ETF (IBIT) has swiftly overtaken MicroStrategy, a significant player in the cryptocurrency investment market. This milestone is particularly significant given the short existence of IBIT and its advantages for the cryptocurrency community.
IBIT’s rapid acquisition of Bitcoin signals a dramatic shift in the institutional Bitcoin investment landscape, challenging MicroStrategy’s previous dominance and emphasizing the growing interest and involvement of institutional investors in the Bitcoin market. This scenario suggests that Bitcoin and other digital assets are increasingly being accepted by institutions as legitimate financial instruments.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
