BlackRock hits hard : 24 billion dollars in Bitcoin !
The global financial landscape continues to transform at a dizzying pace. And Bitcoin, once seen as a risky bet, has gradually established itself as a preferred asset for major institutional investors. Among them, BlackRock, the world’s largest asset manager, marks a new milestone in the adoption of Bitcoin. With new strategic acquisitions, this company has seen its Bitcoin holdings reach nearly $24 billion, thus confirming its key role in the evolution of the crypto ecosystem.
BlackRock, a major player in Bitcoin accumulation
BlackRock, with its iShares Bitcoin Trust (IBIT), has made headlines with its significant increase in Bitcoin holdings. The asset manager added $35 million worth of Bitcoin to its portfolio yesterday, Thursday, September 26, 2024, bringing its total reserves to 362,192 BTC, worth nearly $24 billion. These figures represent about 1.70 % of the Bitcoin currently in circulation, a strong indicator of BlackRock’s confidence in the growth potential of this cryptocurrency.
BlackRock is not alone in this approach. Along with Grayscale, another major player in the sector, these two companies alone hold nearly 3 % of the total Bitcoin supply available on the market.
The implications for the crypto market
Beyond mere numbers, BlackRock’s new acquisitions signal a deep-seated dynamic that could well redefine the crypto market in the coming months. On September 25, 2024, BlackRock’s iShares Bitcoin Trust recorded an unprecedented inflow of $184.4 million in a single day, illustrating the appetite of institutional investors for such financial products. This surge occurred shortly after the decision taken on Wednesday, September 18, 2024, by the U.S. Federal Reserve to lower interest rates, which potentially increased the appeal of cryptos like Bitcoin.
However, this massive increase in BlackRock’s holdings is accompanied by controversies. Rumors have circulated about the role of Coinbase, BlackRock’s fund custodian, suggesting that the platform might not physically hold all the Bitcoin purchased but instead issue “paper Bitcoins” or IOUs (I Owe You). Brian ARMSTRONG, CEO of Coinbase, quickly addressed the situation: “all ETF transactions are settled on the blockchain, and institutional funds are fully backed by real Bitcoins.”
The rise of BlackRock in the crypto world is a strong signal of institutional adoption of Bitcoin. In just one year, the asset manager has consolidated its position as a leader in crypto-backed financial products, with record investment flows. This trend, supported by the latest interest rate cut and clarification of asset custodial mechanisms, could lead to a new wave of crypto adoption by other major financial institutions.
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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.