BlackRock Nears Top Bitcoin Fund Status with $27 Billion Holdings

BlackRock has significantly increased its investment in Bitcoin, now holding over 403,725 BTC valued at approximately $26.98 billion.

This surge follows the asset manager’s recent purchase of 34,085 BTC worth $2.3 billion in just two weeks, according to analytics platform Lookonchain.

A related report by the Financial Times states that BlackRock is on track to become the largest operator of a Bitcoin fund globally. This marks a notable shift from the firm’s earlier skepticism regarding cryptocurrencies. Since launching its spot Bitcoin exchange-traded fund (ETF) four months ago, BlackRock accumulated $16.7 billion in assets, positioning it less than $1 billion behind market leader Grayscale, which has $28 billion in assets after a decade in the market.

In addition to Bitcoin, BlackRock has also launched arguably the fastest-growing tokenized Treasury fund, which crypto hedge funds and market makers are increasingly using as collateral for trading various digital assets. This strategic pivot contrasts sharply with CEO Larry Fink’s past remarks, when he described Bitcoin as “an index of money laundering” seven years ago.

BlackRock Strategic Moves in the Evolving Crypto Landscape

At the launch of the spot ETF in January, Fink expressed a “very bullish” outlook on Bitcoin’s long-term viability, emphasizing its role in what he called “the technological revolution in the financial market.”

The company’s entry into the digital asset space has been both methodical and strategic, focusing on Bitcoin and Ethereum exchange-traded products (ETPs) and tokenization initiatives. A crucial aspect of this strategy has involved forming partnerships in centralized finance (CeFi) to establish a solid foundation for growth.

For instance, in 2022, BlackRock collaborated with Coinbase to integrate Coinbase Prime functionalities into Aladdin, its proprietary investment management platform. This integration enables BlackRock and its clients to seamlessly manage their Bitcoin and Ethereum exposures alongside traditional assets. Kevin Tang of BlackRock even noted that “the platform integration was crucial in establishing the foundational capabilities that would eventually facilitate the development of IBIT [iShares Bitcoin Trust].”

The launch of Bitcoin ETPs in the U.S. and the subsequent introduction of spot Ether ETPs represent significant milestones in the convergence of traditional finance and cryptocurrency. This development has spurred increased institutional interest and positively influenced overall market sentiment.

Following the approval of the Bitcoin ETP, the cryptocurrency market experienced a substantial uptick in activity.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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