World's largest asset manager raises crypto holdings to $24 billion
The global financial landscape continues to transform at a dizzying pace. Bitcoin, once seen as a risky bet, has gradually established itself as a favorite asset among major institutional investors. BlackRock, the worldâs largest asset manager, represents a new milestone in Bitcoin adoption.
With new strategic acquisitions, the company has seen its Bitcoin holdings reach nearly $24 billion, underscoring its key role in the evolution of the cryptocurrency ecosystem.
BlackRock, through its iShares Bitcoin Trust, has been making headlines with a significant increase in its Bitcoin holdings. The asset manager added $35 million worth of Bitcoin to its portfolio on Thursday, bringing its total holdings to 362,192 Bitcoin, worth nearly $24 billion.
According to CoinTribune, these numbers represent about 1.70% of the current Bitcoin in circulation, a strong indication of BlackRock's confidence in the growth potential of this cryptocurrency.
BlackRock is not alone in this approach. Along with Graycycle, another major player in the sector, these two companies alone hold nearly 3% of the total Bitcoin supply available in the market.
Beyond just numbers, BlackRockâs new acquisitions point to a profound dynamic that could redefine the crypto market in the coming months.
On September 25, 2024, BlackRockâs iShares Bitcoin Trust recorded an unprecedented inflow of $184.4 million in a single day, demonstrating institutional investorsâ appetite for such financial products. The surge came shortly after the US Federal Reserveâs decision on Wednesday, September 18, 2024, to cut interest rates, potentially increasing the appeal of cryptocurrencies like Bitcoin.
However, this massive increase in BlackRockâs holdings has been accompanied by controversies. Rumors have circulated about Coinbaseâs role as BlackRockâs custodian, suggesting that the platform may not actually hold all of the purchased Bitcoin but instead issue Bitcoin fiat or debt securities.
Coinbase CEO Brian Armstrong was quick to address the situation, saying: âAll ETF transactions are settled on BlackChain, and institutional funds are fully backed by real Bitcoin.â
BlackRockâs rise in the crypto space is a strong signal of institutional adoption of Bitcoin. In just one year, the asset manager has cemented its position as a leader in crypto-backed financial products, with record investment inflows. This trend, fueled by recent interest rate cuts and clarification of custody mechanisms, could lead to a new wave of crypto adoption by other major financial institutions.
