BlackRock once again bought BTC in a big way, holding more than $25 billion. How will investors respond?
BlackRock, the world's largest asset management company and issuer of Bitcoin spot ETF IBIT, recently (10/16) purchased Bitcoin worth $391.8 million, and its current Bitcoin reserves have exceeded $25 billion.
This increase in holdings shows that BlackRock's confidence in the long-term value of Bitcoin continues to increase. Although Bitcoin is highly volatile, BlackRock's continued investment may encourage other institutional investors who are waiting to enter the market, further promoting the global popularity of Bitcoin.
Previously, at the Digital Asset Conference held a few days ago, BlackRock's research showed that in different time periods, allocating Bitcoin in the investment portfolio often allows the return rate to be higher than the traditional investment portfolio. Although the allocation of Bitcoin may increase the volatility of the investment portfolio, the higher return potential makes the risk almost negligible.
In addition, BlackRock also analyzed the importance of long-term holding of Bitcoin. In the past four years, the minimum return rate of Bitcoin was 137%; even if it was only held for three years, Bitcoin still had a positive return rate, showing that Bitcoin is more suitable for long-term holding than short-term operations.
As the US presidential election approaches, Donald Trump and Kamala Harris have expressed their support for the cryptocurrency industry. In a fundraising event last month, Kamala Harris promised to create jobs in innovative technologies such as AI and digital assets while protecting consumers and investors; in addition to Trump's shift in his stance on cryptocurrency over the past year, he also published NFT and recently promoted the deployment and launch of the DeFi project World Liberty Financial.
This series of friendly institutions and policies also seems to indicate that the concept of viewing Bitcoin as "digital gold" will become more popular.
