BlackRock continues to demonstrate a strong commitment to Bitcoin accumulation, expanding its portfolio to 363,626 BTC as of Friday, September 27. The asset management firm has maintained a positive outlook on crypto for almost ten years and shows no intention of slowing down.
As BlackRock increases its Bitcoin holdings, it is establishing itself as one of the leading institutional players in the cryptocurrency arena.
BlackRock Expands Bitcoin Portfolio With 1,434 BTC Acquisition
The asset manager acquired 1,434 BTC valued at $94.3 million on Friday, bringing total purchases over the last four days to 5,894 Bitcoin, amounting to $387.68 million. This follows a September 26 acquisition of 4,460 BTC valued at $289 million. Currently, BlackRock holds 363,626 Bitcoin worth $23.68 billion.
“BlackRock acquired another 1,434 BTC ($94.3 million)! BlackRock (IBIT) has added 5,894 BTC ($387.68 million) to its portfolio in the last three days, contributing to a total of 363,626 BTC ($23.68 billion),” reported Lookonchain .
BlackRock ranks as the third largest Bitcoin holder, following Satoshi Nakamoto and Binance. As the firm continues to bolster its holdings, it is approaching Binance, which is estimated to possess around 550,000 BTC.
Read more: Who Holds the Most Bitcoin in 2024?
The momentum arises as BlackRock perceives Bitcoin as a safe haven. Its digital asset head, Robbie Mitchnick, claims that Bitcoin is inherently a risk-off asset. He argues that Bitcoin is not linked to the economic stability or policies of any specific country. The finite asset [BTC] is shielded from the typical threats of currency depreciation and political unrest.
“There have been times when Bitcoin’s correlation with equities has increased and other times when it has turned negative. In fact, gold exhibits similar patterns where temporary fluctuations occur, but over the long term, it tends to stay close to zero,” Mitchnick noted.
It is important to highlight that BlackRock’s newfound engagement with Bitcoin signifies a notable shift, particularly for its CEO, Larry Fink. He was previously a vocal critic of Bitcoin, describing it as speculative and potentially hazardous.
BlackRock’s IBIT Dominates the Spot Bitcoin ETF Market
Amidst its aggressive Bitcoin purchasing, the firm’s flagship IBIT Bitcoin ETF (exchange-traded fund) leads the spot BTC ETF sector. It boasts total net inflows of $21.42 billion as of September 27, with Fidelity’s FBTC following at $9.99 billion. Like its competitors, BlackRock enables institutional investors to gain indirect exposure to BTC through this financial vehicle.
Following the pivotal approval of Bitcoin ETFs in the US in January, institutional interest in Bitcoin has surged. The total cumulative net inflow for all issuers reached $18.80 billion by Friday’s market close.
Notably, while BlackRock’s IBIT remains the top-performing spot Bitcoin ETF in terms of inflows, it has also raised custodial concerns. Some investors are questioning why the Bitcoin price does not reflect the positive inflows.
Read more: How To Trade a Bitcoin ETF: A Step-by-Step Guide.
Conversely, some observers are worried that increased institutional adoption could undermine the foundational principles of Bitcoin. Specifically, the growing institutional control in the cryptocurrency ecosystem may revert power to the very entities Bitcoin was designed to circumvent.
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