Fri 27 September 2024 ▪
4
min reading ▪ acc
The global financial environment is constantly changing at breakneck speed. And bitcoin, once seen as a risky bet, has gradually established itself as an asset for large institutional investors. Among them, BlackRock, the world’s largest asset manager, marks a new milestone in Bitcoin adoption. Thanks to new strategic acquisitions, this company has reached almost $24 billion in bitcoin holdings, confirming its key role in the development of the crypto ecosystem.
BlackRock, a major player in Bitcoin accumulation
BlackRock has made headlines with its iShares Bitcoin Trust (IBIT) thanks to a significant increase in bitcoin holdings. The asset manager added $35 million worth of bitcoins to its portfolio yesterday, Thursday, September 26, 2024, bringing its total reserves to 362,192 BTC, or a value close to $24 billion. These numbers represent approximately 1.70% of Bitcoin currently in circulation, a strong indicator of BlackRock’s confidence in the cryptocurrency’s growth potential.
BlackRock is not alone in this approach. Together with Grayscale, another major player in the sector, these two companies alone hold nearly 3% of the total supply of bitcoins available on the market.
Implications for the crypto market
Beyond the simple numbers, BlackRock’s new acquisitions demonstrate a fundamental dynamic that could redefine the crypto market in the coming months. On September 25, 2024, the BlackRock iShares Bitcoin Trust saw a record inflow of $184.4 million in a single day, illustrating the appetite of institutional investors for this type of financial product. The increase came shortly after the US Federal Reserve’s decision on Wednesday, September 18, 2024 to cut interest rates, which could increase the appeal of cryptocurrencies such as Bitcoin.
However, this massive increase in BlackRock’s holdings comes with controversy. Rumors swirled around Coinbase’s role as BlackRock’s fund manager that the platform would not physically hold all purchased bitcoins, but would instead issue “paper bitcoins,” 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 completely backed by real bitcoins.”
BlackRock’s rise in the crypto world is a strong signal of institutional acceptance of Bitcoin. In just one year, the asset manager has consolidated its leading position in cryptocurrency-backed financial products with record investment flows. This trend, supported by the recent decline in interest rates and the clarification of asset custody mechanisms, could lead to a new wave of cryptocurrency adoption by other major financial institutions.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I try to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations and put into perspective the economic and social problems of this ongoing revolution.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.