Bitcoin (BTC) price could make it to its all-time high soon, steered by multiple reports. The latest is reports that BlackRock has filed to purchase Bitcoin exchange-traded funds (ETFs) for its Strategic Income Opportunities Fund.
JUST IN: BlackRock filed with the SEC to purchase #Bitcoin ETFs for its Strategic Income Opportunities Portfolio.
— Bitcoin Magazine (@BitcoinMagazine) March 4, 2024
Citing an excerpt from the filing:
The Fund may acquire shares in exchange-traded products (“ETPs”) that seek to reflect generally the performance of the price of bitcoin by directly holding bitcoin (“Bitcoin ETPs”), including shares of a Bitcoin ETP sponsored by an affiliate of BlackRock.
Another possible catalyst is the revelation that Stanford University's Blyth Fund has spent approximately 7% of its portfolio to buy Bitcoin.
JUST IN: Stanford University's Blyth Fund has bought #Bitcoin with a ~7% allocation of the total portfolio. pic.twitter.com/oQtrh2eyts
— Bitcoin Archive (@BTC_Archive) March 4, 2024
Crypto ETF FAQs
What is an ETF?
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Is Bitcoin futures ETF approved?
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Is Bitcoin spot ETF approved?
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
This section below was published on March 4 at 22:00 GMT, only minutes after Michael Saylor announced MicroStrategy's plans.
- MicroStrategy has announced a proposed private offering of $600 million of convertible senior notes.
- The firm could use net proceeds from the sale of notes to acquire additional BTC and for general corporate purposes.
- Bitcoin price is steadily approaching its peak of $69,000, with the latest report likely to inspire another FOMO wave.
MicroStrategy (MSTR), one of the largest holders of Bitcoin (BTC), could inspire another wave of buying frenzy after an announcement from the firm’s CEO, Michael Saylor, on Monday.
Also Read: Bitcoin price nears all-time high as BTC market cap surpasses $1.3 trillion
MicroStrategy wants to absorb more Bitcoin
In a post on X, Saylor revealed his firm’s intention to absorb more Bitcoin after a proposed private offering of $600 million of convertible senior notes.
MicroStrategy Announces Proposed Private Offering of $600 Million of Convertible Senior Notes $MSTR https://t.co/PEN5dxesIb
— Michael Saylor⚡️ (@saylor) March 4, 2024
Key takeaways from the report stipulate that the $600 million aggregate principal amount of convertible senior notes due 2030 will be offered:
- Subject to market conditions, among other factors
- In a private offering to persons reasonably believed to be qualified institutional buyers
- Pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”)
- Initial purchasers of the notes will get a 13-day priority period upon first issue
The offering is subject to market and other conditions, and there can be no assurance as to whether, when, or on what terms the offering may be completed.
An excerpt from the report highlighted, “MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes.”
Bitcoin price holds above $67,000
Bitcoin price shattered the upper boundary of the November 2021 supply zone at $67,525, recording an intra-day high of $67,770. It continues to inch closer to its $69,000 peak, a milestone that if reached, would bring the $70,000 psychological level into focus.
If Bitcoin price manages a candlestick close above the $67,500 threshold, effectively flipping the supply zone into a bullish breaker, the intermediate trend would continue.
BTC/USDT 1-day chart
The MicroStrategy report could inspire another wave of FOMO, the fear of missing out, inspiring a flow of capital into the BTC market. The same happened on February 28 when the business intelligence firm added 3,000 BTC tokens to its portfolio, worth approximately $155 million.
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