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Crypto SWOT: BlackRock is adding a 1% to 2% allocation to the $48 billion iShares Bitcoin ETF

Kitco Media
By Frank E Holmes
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Crypto SWOT: BlackRock is adding a 1% to 2% allocation to the $48 billion iShares Bitcoin ETF teaser image

Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Story IP, rising 16.79%.
  • Uniswap Labs, the creator of the largest decentralized trading platform on Ethereum, said the Securities and Exchange Commission (SEC) has closed its investigation into the company with no enforcement action. The SEC had alleged that Uniswap Labs operated as an unregistered broker and exchange and issued and unregistered securities, but these claims have been dropped.  
  • Mara Holdings shares are up 11% in premarket trading after the crypto mining firm reported total revenue for the fourth quarter that beat the average analyst estimate. Revenue growth was driven by a significant increase in the company’s hash rate (up 44% y/y) and a higher Bitcoin price, according to Bloomberg. 

Weaknesses

  •  Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Raydium, down 48.56%.
  • With the so-called “Trump bump” fading across markets, Bitcoin options are showing that investors and traders are hedging against a decline in the cryptocurrency to levels last seen just after Election Day. The open interest for put options with a strike price of $70,000 is the second highest among all contracts expiring on Feburary 28, according to data from Derbit, writes Bloomberg.  
  • Investors withdrew over $1 billion from spot Bitcoin exchange-traded funds (ETFs) in one day, the largest outflow since last January. The outflows are likely due to hedge funds unwinding a trading strategy that exploits price differences between spot and futures markets, and/or newer crypto investors panicking and selling. 

Opportunities

  • Bitwise Asset Management has raised $70 million in a new funding round, backed by high-profile investors like MassMutual and MIT Investment Management. The funds will be used to bolster the company’s balance sheet and contribute to internal initiatives.  
  • Crypto infrastructure builder Consensys said the SEC has agreed in principle that the securities enforcement case concerning its MetaMask business should be dismissed. The SEC has dismissed or put on hold at least seven cases of investigations in the last three years week, according to Bloomberg. 
  • The world’s largest asset manager is finally allowing Bitcoin into its $150 billion model-portfolio universe. BlackRock is adding a 1% to 2% allocation to the $48 billion iShares Bitcoin Trust ETF in its target allocation portfolios that allow for alternatives.  
     

Threats

  • The GitHub code you use to build a trendy application or patch existing bugs might just be used to steal your Bitcoin or other crypto holdings. A report warned users of a “GitVenom” campaign that’s been active for at least two years but steadily on the rise, involving planting malicious code in fake projects on the popular code repository platform. 
  • Bitcoin tumbled below $90,000 to hit the lowest level since mid-November, as the rally that followed Donald Trump’s election to the White House reverses under the weight of his trade tariffs and a string of industry setbacks. Bitcoin dropped as much as 7.6% and traded around $83,000 after U.S. markets closed on Wednesday. 
     

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  • A rout in Bitcoin deepened on Friday as investors rushed to safe assets in the wake of President Donald Trump’s latest tariff threats, marking a dramatic reality check for one of the most popular Trump trades. Bitcoin tumbled as much as 7.2% on Friday to the lowest since early November and is down some 27% since it hit an all-time high less than six weeks ago, writes Bloomberg. 
Kitco Media

Frank E Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

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All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk.

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