U.S. Sovereign Wealth Funds and Pension Funds are Preparing to Enter! BlackRock Announces: A New Bitcoin Bull Run is Coming

On Friday (May 3), Bitcoin rebounded to $59,900, attempting to break through the $60,000 mark again. Wall Street asset management giant BlackRock hinted that U.S. sovereign wealth funds and pension funds will enter the Bitcoin ETF market in the coming months, indicating that a new wave of investors may flood into the Bitcoin spot ETF arena.

Robert Mitchnick, BlackRock's Head of Digital Assets, stated on a news website that they expect a "new wave of capital inflows" from "various types of investors". This statement was made after a significant stagnation in capital flows into Bitcoin spot ETFs.

Specifically, Mitchnick mentioned that the new entrants might include financial institutions such as sovereign wealth funds, pension funds, and endowment funds. He added that if these categories of investors start trading in spot ETFs, it would mean a "rekindling of discussions around Bitcoin".

Moreover, Mitchnick revealed that BlackRock has been negotiating with various types of institutions, including "pension funds, endowment funds, sovereign wealth funds, insurance companies, other asset management companies, and family offices," regarding Bitcoin.

Additionally, a U.S. SEC filing showed that BNP Paribas, Europe's second-largest bank by assets, purchased shares of BlackRock's Bitcoin spot ETF (IBIT).

BNP Paribas' investment in IBIT was modest, with a purchase of 1,030 shares at $40.47 each in the first quarter of 2024, totaling $41,684.10. At current prices, this is less than the value of a single Bitcoin. Nonetheless, this is significant as it is one of the first confirmed instances of a major financial institution buying shares in a Bitcoin spot ETF.

Source: Fidelity

Besides the Wall Street Bitcoin spot ETF, there was significant news from the Middle East as Israeli airstrikes in Damascus resulted in eight injuries, elevating safe-haven sentiments but suppressing the currently risk-linked cryptocurrency market.

Furthermore, U.S. Senator Elizabeth Warren, one of the most prominent critics of cryptocurrencies, warned senior military and financial officials that Iran relies on cryptocurrency mining as a source of revenue, which could alleviate the pressure of U.S. sanctions.

Warren and Senator Angus King wrote to Defense Secretary Lloyd Austin, Treasury Secretary Janet Yellen, and National Security Advisor Jake Sullivan, requesting an explanation of what measures are being taken regarding the "increasingly profitable" relationship between Iran and cryptocurrency mining, and emphasized that this "poses a direct threat to U.S. national security."