The global financial landscape continues to transform at breakneck speed. And Bitcoin, once perceived as a risky bet, has gradually established itself as an asset of choice for large 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, confirming its key role in the evolution of the crypto ecosystem.
BlackRock, a major player in the accumulation of Bitcoin
BlackRock, with its iShares Bitcoin Trust (IBIT), has made headlines through the significant increase in its 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, or a value close to $24 billion. These figures represent approximately 1.70% of Bitcoin currently in circulation, a strong indicator of BlackRock's confidence in the growth potential of this crypto.
BlackRock is not alone in this approach. Along with Grayscale, another major player in the sector, these two companies alone hold almost 3% of the total supply of Bitcoin available on the market.
Implications for the crypto market
Beyond simple numbers, BlackRock's new acquisitions demonstrate a fundamental dynamic that could well redefine the crypto market in the months to come. On September 25, 2024, BlackRock's iShares Bitcoin Trust fund recorded a record inflow of $184.4 million in a single day, illustrating the appetite of institutional investors for this type of financial product. This surge came shortly after the US Federal Reserve's decision on Wednesday, September 18, 2024, to cut interest rates, potentially boosting the appeal of cryptos like Bitcoin.
However, this massive increase in BlackRock's holdings comes with controversy. Rumors have swirled around the role of Coinbase, the custodian of BlackRock's funds, that the platform would not physically hold all Bitcoin purchased, but would instead issue “paper Bitcoin” or IOUs (IOUs). Brian ARMSTRONG, CEO of Coinbase, quickly weighed in to clarify the situation: “all ETF transactions are settled on the blockchain, and institutional funds are entirely backed by real Bitcoin.”
The rise of BlackRock in the crypto universe is a strong signal of the institutional adoption of Bitcoin. In just one year, the asset manager has consolidated its leading position in the field of crypto-backed financial products, with record investment flows. This trend, supported by the latest drop in interest rates and clarification of asset custody mechanisms, could lead to a new wave of crypto adoption by other major financial institutions.
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