BlackRock Buys $2.4 Billion in Bitcoin This Week, Paving the Way for Institutional Adoption
BlackRock, the world's largest asset manager, has reportedly bought nearly $2.4 billion worth of bitcoin this week in preparation for the launch of its Bitcoin ETF offering. This massive purchase and another $300 million worth of Bitcoins collected in just two days are some signs that BlackRock now believes in its digital asset. Institutional demand for cryptocurrencies is turning the tide.
Analysts believe BlackRock's investments could affect broader market sentiment. Considering the huge demand of Bitcoin ETFs, the firm's activity suggests that other institutional players can make their move in portfolio diversification, which is a moderate support for the potential of Bitcoin as the main resource in finance.
Institutional investment in the crypto space is at an unprecedented level, experts suggest, and the buying by leading companies could be the starting point for the continued rally. BlackRock's entry into the Bitcoin ETF market reflects how traditional financial houses have turned to digital assets.
In particular, BlackRock's iShares is trying to appeal to investors looking to diversify beyond the so-called Magnificent Seven (Apple, Amazon, Meta, Alphabet, Microsoft, Nvidia and Tesla). The company launched the iShares Top 20 US Stocks ETF this month, which is made up of the 20 largest US stocks by market capitalization.
The firm's US head of iShares product explained that the ETF's mission is to deliver a simple and accessible way to test megacap innovation – “whether it's in the tech-heavy Nasdaq space or, more importantly, in the S&P [500]He said.
On Wednesday, BlackRock hit a milestone in the Bitcoin ETF market, posting the biggest gain since the creation of these investment funds in January.
According to Bloomberg, $872 million flowed into BlackRock's iShares Bitcoin Trust on Wednesday, marking a daily record for the fund, as demand for Bitcoin ETFs increased.
BlackRock's total Bitcoin holdings now stand at 429,185 BTC, worth approximately $31.04 billion. This accounts for about 2.04% of Bitcoin's total supply, held at 21 million coins.
The latest earnings are being linked to the “Trump trade” as Donald Trump is showing momentum in the betting markets ahead of the November 5th election.
