Author: Crypto A Yao; Source: Wainao Xiaohutu
BlackRock's accumulation interest in Bitcoin remains steady, with its portfolio growing to 363,626 Bitcoins as of Friday, September 27. The asset management company has been bullish on cryptocurrencies for nearly a decade and shows no signs of stopping.
With its growing Bitcoin holdings, BlackRock is solidifying its position as the most dominant institutional player in the cryptocurrency space.
On Friday, the asset management company purchased 1,434 Bitcoins worth $94.3 million, bringing its total purchases over the past four days to 5,894 Bitcoins worth $387.68 million. Prior to this, the company purchased 4,460 Bitcoins worth $289 million on September 26. BlackRock currently owns 363,626 Bitcoins worth $23.68 billion.
“BlackRock bought another 1,434 BTC ($94.3 million)! BlackRock (IBIT) has added 5,894 BTC ($387.68 million) in the past 3 days and now holds a total of 363,626 BTC ($23.68 billion),” Lookonchain reported.
BlackRock is the third largest Bitcoin holder, behind Satoshi Nakamoto and Binance. As the company continues to increase its holdings, it is closing in on Binance, which reportedly holds around 550,000 BTC.
Bitcoin’s appeal comes as BlackRock views it as a safe haven. Robbie Mitchnick, the firm’s head of digital assets, sees Bitcoin as fundamentally a safe haven asset. Mitchnick believes Bitcoin is uncorrelated to any one country’s economic conditions or policies. He says the scarce asset [BTC] is immune to common risks like currency debasement and political unrest.
“Bitcoin’s correlation with stocks sometimes spikes and sometimes drops. In fact, gold exhibits a lot of the same patterns, where gold has brief periods of spikes but is close to zero over the long term,” Mitchnick said.
It’s worth noting that BlackRock’s newly discovered pivot on Bitcoin marks a major shift, especially for the firm’s CEO, Larry Fink. He is an outspoken Bitcoin skeptic who once viewed Bitcoin as a speculative and potentially dangerous asset.
Despite the company's active purchases of Bitcoin, its flagship IBIT Bitcoin ETF (Exchange Traded Fund) remains at the forefront of the spot BTC ETF market. As of September 27, its cumulative net inflows reached $21.42 billion, followed by Fidelity's FBTC with a net inflow of $9.99 billion. Like other issuers, BlackRock provides institutional investors with indirect investment opportunities in BTC through this financial instrument.
Following the approval of Bitcoin ETFs in the United States in January this year, institutional investors' enthusiasm for Bitcoin has also increased. As of the close of Friday, the cumulative net inflows of all issuers totaled US$18.8 billion.
It is worth noting that since BlackRock's IBIT remains the most successful spot Bitcoin ETF in terms of inflow indicators, it has raised concerns about custody. Investors questioned why Bitcoin price performance failed to reflect positive flows.
On the other hand, some worry that increased institutional adoption could threaten or erode Bitcoin’s founding principles. Specifically, institutional control of the crypto space would shift power back to the very entities that Bitcoin was designed to bypass.
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