The inaugural approval of the first-ever spot Bitcoin (BTC) exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) in January 2024 marked a significant milestone. Among these, BlackRock (NYSE: BLK) created an ETF and has been actively acquiring Bitcoin since then.
BlackRock’s Bitcoin holdings within its IBIT iShares Bitcoin Trust ETF have been steadily increasing, now amounting to 359,278 BTC valued at approximately $22.9 billion, as reported by data from Apollo Bitcoin Tracker on September 25.
In the recent days, BlackRock’s spot Bitcoin ETF witnessed significant inflows, with $99 million worth of Bitcoin or 1,548 BTC added, the highest inflow in a month. This surge propelled their total holdings from 357,730 BTC on September 23 to 359,278 BTC on September 24, placing BlackRock at the forefront among spot Bitcoin ETF managers.
In terms of Bitcoin investment policies, BlackRock’s Head of Digital Assets, Robbie Mitchnick, emphasized that Bitcoin is viewed as an emerging global monetary alternative rather than a high-risk asset. He highlighted Bitcoin’s scarcity, global decentralization, and lack of country-specific or counter-party risks as key investment attributes amidst growing concerns over traditional financial risks.
Mitchnick clarified that misconceptions about Bitcoin being a high-risk asset often confuse investors, emphasizing that Bitcoin is considered a ‘risk-off’ asset due to its fundamental properties. He explained that the intrinsic value of Bitcoin is impacted by only a few significant events annually, urging investors to focus on long-term trends rather than daily market fluctuations unrelated to Bitcoin.
As of the latest data on September 25, Bitcoin is trading at $63,810, reflecting a slight increase over the past 24 hours and significant gains over the week and month. BlackRock’s active Bitcoin acquisitions underscore its bullish stance compared to other market players, reiterating the importance of conducting thorough research before making investment decisions.