BlackRock ETF: BlackRock is Becoming The Largest Bitcoin Holder

BlackRock is Becoming The Largest Bitcoin Holder Thanks to the BlackRock ETFs.

16 January 2024

In a groundbreaking move, global financial giant BlackRock has purchased nearly 11,500 Bitcoin, amassing a collection for its recently launched spot Bitcoin Exchange-Traded Fund (ETF). This move marks BlackRock as a major contender in the world of cryptocurrency, holding one of the most substantial caches of Bitcoin globally.

Notably, BlackRock’s acquisition comes hot on the heels of the inauguration of the first-ever spot Bitcoin BlackRock ETFs in the United States. With its swift and sizable collection, BlackRock now rivals the world’s most substantial public Bitcoin holders, even outpacing Tesla’s 9,270 Bitcoin. Currently, it ranks as the third-largest Bitcoin holder among public corporations.

The pace at which BlackRock is amassing Bitcoin signals the possibility of it soon becoming the largest single entity holder of Bitcoin. Eric Balchunas, a senior ETF analyst at Bloomberg, echoed this prediction, who confidently stated that such a scenario is inevitable.

The firm’s approach, however, contrasts with other public Bitcoin holders like MicroStrategy. While the latter holds over 189,000 Bitcoins as a treasury reserve asset, BlackRock utilizes Bitcoin as the foundation of an ETF.

The latest data from the public iShares Bitcoin Trust holdings on BlackRock’s site demonstrates that the product holds of BlackRock ETFs in 11,439.2198 “shares” of Bitcoin, valued at a staggering $497,994,992.41. Despite significant early trading volume, the spot price of Bitcoin remains relatively unchanged.

Should BlackRock maintain its buying momentum, the cryptocurrency market is bound to feel the impact. Market analysts estimate that this could potentially trigger a supply crunch, given that only 900 BTC are issued daily.

In a significant shift, BlackRock’s move towards embracing cryptocurrency is reflective of Wall Street’s growing acceptance of this asset class. Despite CEO Larry Fink’s public criticisms of Bitcoin, his recent comments following the spot ETF listing indicate a reversal in his stance. In fact, he lauded Bitcoin as an asset capable of providing investors with protection. Further highlighting this shift, BlackRock has launched a commercial aimed at the Boomer generation for its spot Bitcoin ETF.

As of the reporting time, Bitcoin‘s price hovers around $42,700, having experienced a surge immediately after the approval of spot Bitcoin ETFs, followed by a notable decline once trading commenced. The financial world watches with bated breath as the ramifications of BlackRock’s bold move unfold in the coming days.

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