BlackRock has purchased more Bitcoin and Ethereum and now holds 359,606 BTC and 350,000 ETH, valued at over $45 billion, indicating strong institutional confidence.

BlackRock has increased its investment in cryptocurrencies, purchasing an additional 529 BTC and 2,420 ETH. With these new acquisitions, BlackRock now owns 359,606 BTC, valued at $22.82 billion, and 350,000 ETH, valued at $23 billion.

BlackRock’s continued purchases indicate that institutional investors remain bullish on the long-term investment potential of digital assets, especially BTC.

BlackRock’s Growing Bitcoin Holdings

BlackRock, the world’s largest asset manager, has been increasing its investment in Bitcoin as it believes the cryptocurrency can protect against various risks. The company has added 529 Bitcoins to its balance, increasing its total Bitcoin reserves to 359,606, Arkham Intelligence reported.

The majority of these assets are held by BlackRock’s iShares Bitcoin Trust (IBIT), which gives investors direct exposure to Bitcoin.

The asset manager’s bullish buying spree comes as Bitcoin is viewed as a “safe haven” asset, despite conventional wisdom that cryptocurrencies are high-risk investments. BlackRock’s head of digital assets, Michnik, said Bitcoin is different from other risky assets such as stocks because it is a decentralized, non-sovereign and scarce global asset.

BTC ETF inflows hit record high

At the same time, BlackRock's iShares Bitcoin Trust saw Bitcoin inflows of more than $99 million, the highest single-day inflow in nearly 30 days.

The increase in investment is due to growing interest among institutional investors in investing in Bitcoin through regulated ETFs, which provide investors with an easier way to profit from Bitcoin price appreciation.

The ETF’s performance is particularly impressive given current economic conditions, as investors seek new ways to invest beyond stocks and bonds. Michnik’s recent comments align with BlackRock’s view of Bitcoin as a diversified investment vehicle, highlighting its ability to perform well during periods of market uncertainty.

Bitcoin Market Outlook for Q4 2024

The asset manager’s latest acquisition comes amid rising optimism for Bitcoin, especially in the fourth quarter, which has historically been favorable for cryptocurrencies. Bitcoin prices have risen more than 5% in the past week, hitting a high of $64,440, with expectations for further appreciation in the fourth quarter of this year. Analysts are eyeing potential resistance around $70,000, with some predicting that Bitcoin prices will surge to $172,800 by the end of 2024, driven by favorable macroeconomic conditions and increased market liquidity.

Recent moves by the Federal Reserve, such as the 50 basis point rate cut, have also fueled Bitcoin’s gains, as low interest rates are good for risk assets as they reduce the returns on holding bonds and other income-generating assets.With BlackRock continuing to buy and positive market trends, many are eagerly waiting to see if Bitcoin can maintain its gains in the coming months.

While BlackRock’s continued accumulation supports the bullish case for Bitcoin’s price, recent moves by defunct cryptocurrency exchange Mt. Gox have raised concerns. Mt. Gox has moved the majority of its BTC holdings, emptying four wallets after receiving 370,000 BTC from Kraken. The move has sparked speculation that Mt. Gox may be preparing to pay its remaining creditors, which could put more selling pressure on the market.