After receiving approval for the first-ever Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) in January 2024, including one launched by BlackRock (NYSE: BLK), the investment giant has been steadily acquiring Bitcoin.
BlackRock’s Bitcoin holdings have been growing within its IBIT iShares Bitcoin Trust ETF, with its current total of the leading cryptocurrency standing at 359,278 BTC, valued at approximately $22.9 billion, as reported by Apollo Bitcoin Tracker on September 25.
BlackRock’s purchases of Bitcoin have been ramping up, with a notable inflow of $99 million worth of Bitcoin or 1,548 BTC into its spot Bitcoin ETF within a single day. This surge propelled the total holdings from 357,730 BTC on September 23 to 359,278 BTC on September 24, solidifying BlackRock’s position ahead of other spot Bitcoin ETF managers like Grayscale, Fidelity, ARK Invest, Bitwise, and others, collectively holding 915,570 BTC in spot ETFs.
Expressing BlackRock’s Bitcoin investment stance, Robbie Mitchnick, BlackRock’s Head of Digital Assets, explained the company’s perspective regarding Bitcoin as an emerging global monetary alternative, emphasizing its scarcity, decentralization, and lack of country-specific risk or traditional counterparty risk. Mitchnick highlighted Bitcoin’s properties as pivotal factors in the current economic landscape marred by concerns over money printing, currency devaluation risks, and political uncertainties.
Contrary to common perceptions of Bitcoin as a high-risk asset, Mitchnick clarified that Bitcoin serves as a low-risk or “risk-off” asset due to its fundamental properties and minimal annual events impacting its value, distinct from the daily market fluctuations unrelated to Bitcoin.
With Bitcoin trading at $63,810, showing recent gains in price, BlackRock’s substantial Bitcoin purchases reflect its strong commitment and positive outlook compared to peers in the Bitcoin spot ETF sector and the wider investment industry. However, it is important to note that past performance does not guarantee future results, emphasizing the necessity of conducting thorough research before making investment decisions.