- BlackRock’s Insight into Bitcoin
- Bitcoin ETF Market Fluctuations
- Will the Federal Reserve’s Interest Rate Cut Affect BTC Price?
The leading American asset management firm, BlackRock, has shared its views on Bitcoin ETF. The report presented an insight into Bitcoin's features as a unique diversifier.
BlackRock’s Insight into Bitcoin
BlackRock emphasized that despite some reservations about Bitcoin being a 'risky asset,' it has outperformed all other major assets. Specifically, in the last ten years, Bitcoin outperformed other assets in seven instances. The firm maintains that this trend places Bitcoin in a unique position relative to other assets to offer protection against financial risks, including fiscal, monetary, and geopolitical instabilities. The report also mentions that Bitcoin could safeguard investments from increasing U.S. debt and general financial uncertainties due to its decentralized nature.
Bitcoin ETF Market Fluctuations
BlackRock's leading ETF, iShares Bitcoin Trust (IBIT), recently showcased a significant net inflow. On September 16, IBIT's cumulative inflow reached $15.8 million, helping the market close with a net inflow of $12.8 million despite Grayscale's heavy outflow. Year-to-date, BlackRock’s total fund inflow has risen over $20 billion. However, the company faces market uncertainty as well. While other asset managers recorded net inflows, BlackRock reported no new inflows last week.
Will the Federal Reserve’s Interest Rate Cut Affect BTC Price?
The U.S. Federal Reserve has cut interest rates from 5.3% to 4.8%, affecting the U.S. economy and crypto assets. Bitcoin investor Lark Davis believes a 0.5% rate cut could trigger a bull run for BTC in the coming months. This view is supported by previous data, possibly influencing ETF flows and institutional investor involvement ahead of the expected increase. However, Bitcoin's price temporarily fell by 0.4% over the last 24 hours to $60,358.80.
BlackRock highlighted Bitcoin as a unique asset that shows consistent outperformance over other assets and protects against various financial risks. Despite market fluctuations, Bitcoin remains an attractive instrument for investors due to its decentralized nature and limited supply.
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