Why BlackRock Is Investing $680 Million In Bitcoin This Week
IBIT ETF provider BlackRock has received more than $680 million in Bitcoin in the past two days. This comes as IBIT, one of the most successful ETFs, is rising in value.
BlackRock executives have praised Bitcoin, and it seems that it will play a key role in the company's future strategies.
Blackrock's massive acquisitions
According to data from Loonchain, ETF issuer BlackRock is buying huge amounts of Bitcoin (BTC). The first of these purchases took place on October 15, buying more than $294 million in assets. BlackRock followed this up the next day with a buyout of over $390 million.
Read more: Who will have the most Bitcoins in 2024?
BlackRock's continued enthusiasm for BTC should come as little surprise given the impressive success of the IBIT Bitcoin ETF. This month, Eric Balchunas declared IBIT one of the top ETF performers of the decade, with more than $25 billion in earnings. The Bitcoin ETF market, in general, is rising this week, but IBIT was the clear leader.
Several members of BlackRock's leadership praised Bitcoin this October. BlackRock's US head of thematic and active ETFs, Jay Jacobs, predicted a $30 trillion BTC market in the coming years. The firm's CEO, Larry Fink, called it an “independent asset class” on the earnings call that promises future growth in the firm's strategy.
“We will continue to pioneer new products to make investing easier and more affordable,” Fink said.
Blackrock is building an impressive Bitcoin inventory, competing with Binance's. Essentially, since IBIT is a spot ETF, BlackRock must hold a corresponding amount of BTC if it wants to continue operating the product.
Read more: What is a Bitcoin ETF?
On Thursday, IBIT received $309 million in revenue, the highest among all Bitcoin ETFs. So far this week, it has recorded $1.07 billion in inflows, according to data from SoSoValue.
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