In a surprising move, BlackRock, a leading global investment firm, has made significant investments in its own spot Bitcoin exchange-traded fund (ETF) through its income and bond-focused funds, according to recent regulatory filings.

BlackRock’s Strategic Income Opportunities Fund (BSIIX) invested $3.56 million in the iShares Bitcoin Trust (IBIT), while its Strategic Global Bond Fund (MAWIX) added $485,000 worth of IBIT shares. These investments are relatively small portions of BSIIX and MAWIX's massive portfolios, which are valued at $37.4 billion and $776.4 million, respectively.

As of May 24, IBIT holds a staggering $19.61 billion worth of Bitcoin, closely trailing the Grayscale Bitcoin Trust (GBTC), which holds $19.76 billion. These figures highlight the growing prominence of spot Bitcoin ETFs, which now collectively hold over 1 million Bitcoin, valued at more than $68 billion. This represents nearly 5.10% of Bitcoin's total circulating supply of 19.7 million, according to CoinGecko.

Since the launch of spot Bitcoin ETFs in January, more than 600 U.S. investment firms have jumped on board. Major financial institutions like Morgan Stanley, JPMorgan, Wells Fargo, Royal Bank of Canada, BNP Paribas, UBS, and hedge funds including Millennium Management and Schonfeld Strategic Advisors have been actively investing in these funds. Notably, Millennium Management has emerged as the largest accumulator of spot Bitcoin ETFs, with a total investment of $1.9 billion, including $844.2 million in IBIT and $806.7 million in the Fidelity Wise Origin Bitcoin Fund (FBTC).

In another significant development, on May 23, BlackRock was among eight firms to have its spot Ether ETF bid approved in the U.S. However, the SEC must still approve the firm's Form S-1 filings for these products to begin trading.

This bold move by BlackRock underscores the growing acceptance and integration of Bitcoin into mainstream financial portfolios, signaling a potential shift in the investment landscape.