- BlackRock’s assets have surged to $10.65 trillion.
- The asset management firm holds a 2% share of the total Bitcoin supply.
BlackRock’s 2% Bitcoin Holdings
As reported by Bitcoin Magazine, BlackRock currently possesses 2% of the total Bitcoin (BTC) supply. This development occurred eight months after the introduction of its spot Bitcoin exchange-traded fund (ETF).
BlackRock has firmly established itself as the largest asset management company globally. In its second-quarter report, the firm revealed $10.65 trillion in assets under management (AUM), marking a substantial increase from the $9.43 trillion AUM in the same quarter the previous year. These latest statistics reflect the company’s highest AUM to date.
This trend continues as BlackRock expands its institutional investments, acquiring between 5% and 20% of voting shares in major global corporations. This level of ownership grants the firm considerable influence over the strategic direction of companies within its portfolio.
Analyzing the Data
While the source did not specify the exact amount of Bitcoin that BlackRock owns, data from Farside Investors indicated that as of the market close on September 11, the asset manager had accumulated roughly $20.9082 billion in shares from spot Bitcoin ETFs.
As of 5:00 AM UTC this Thursday, Bitcoin’s market capitalization, from a circulating supply of 19.75 million, has climbed to $1.15 trillion, revitalizing its position in the $58K range. Given that Bitcoin has a capped supply of 21 million, this yields an approximate fully diluted market cap of around $1.22 trillion. This rise comes in the wake of nearly a 20% increase in trading volume, with $36.69 billion of the cryptocurrency transacted following the latest U.S. inflation report.
At this current trajectory, BlackRock’s holdings in spot Bitcoin ETFs represent 1.81% of the total value of Bitcoin’s circulating supply and 1.71% of its diluted supply. Allowing for possible errors in calculation due to rounding or other unknown factors, there is a chance that Bitcoin Magazine might have access to data not accessible to the general public. Nevertheless, these figures provide a close approximation of the overall state.
BlackRock’s accumulation over just eight months is remarkable, raising questions about whether its aggressive investment strategy through its spot Bitcoin ETF could undermine Bitcoin’s decentralized framework. Arthur Hayes, co-founder of BitMEX, previously expressed similar concerns, indicating that if asset managers like BlackRock succeed too well, they might ultimately harm Bitcoin.
Isabella Santos, the host of the online magazine, clarified that BlackRock’s ownership of Bitcoin does not equate to control over the blockchain ecosystem. She noted that decisions regarding Bitcoin are not influenced by a board but are instead secured by various layers of decentralized safeguards.
Besides Bitcoin holders, miners and node operators also retain a degree of control over Bitcoin’s direction, rendering it “nearly unco-optable.”
Concluding Remarks
While both perspectives of the debate offer legitimate concerns and reassurances, BlackRock’s current 2% stake in Bitcoin’s supply does not yet represent a significant threat to its dynamics. However, given BlackRock’s substantial presence in the market, it could potentially affect prices through large trades or by influencing market sentiment among investors.
