BlackRock Continues To Buy Bitcoin: Holdings Now Reach 358,000 BTC Worth $22 Billion
26 September 2024 - 9:00PM
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In less than nine months since the launch of its Bitcoin
exchange-traded fund (ETF) following the approval of these
investment vehicles by the US Securities and Exchange Commission
(SEC), asset manager BlackRock has established itself as the
world’s largest Bitcoin fund. A Tale Of Two Titans In Bitcoin
And Ethereum Holdings According to on-chain data from blockchain
analysis platform Arkham, BlackRock has aggressively expanded its
Bitcoin holdings through its ETF, known as IBIT over the last
months. Despite recent market volatility that saw significant
dips in Bitcoin’s price on August 5 and September 6, BlackRock
continued to buy more Bitcoin, thereby supporting not only the
token’s value but also its own asset base. Related Reading:
Ethereum Gains On Bitcoin Following Fed Rate Cut: Altseason Soon?
As of September 25, BlackRock’s holdings have reached approximately
358,000 BTC, valued at around $22.76 billion, representing about
1.70% of Bitcoin’s total supply of 21 million. In comparison,
BlackRock’s Bitcoin holdings exceed those of Grayscale, another
major crypto asset manager in the industry, by nearly 100,000 BTC.
Grayscale currently holds approximately 258,671 BTC, valued at
$16.45 billion, highlighting the significant gap that BlackRock has
created in the BTC investment landscape. While BlackRock has taken
a commanding lead in Bitcoin, Grayscale maintains an advantage in
Ethereum (ETH) holdings. Arkham’s data indicates that Grayscale
possesses 2.104 million ETH, valued at roughly $5.45 billion based
on the current trading price of $2,600 per ETH. In contrast,
BlackRock’s Ethereum holdings amount to only 349,970 ETH, valued at
approximately $910 million. BlackRock Strengthens Bitcoin Stance
BlackRock’s support for Bitcoin extends beyond mere investment; it
includes a strong endorsement of the technology underpinning the
cryptocurrency. In a recent interview with Bloomberg, Robbie
Mitchnick, head of digital assets at BlackRock, challenged the
prevailing notion that Bitcoin should be categorized as a “risk-on”
asset. During Tuesday’s interview, Mitchnick noted that while
Bitcoin has recently shown a high correlation with US equities,
this relationship may be misleading. The head of digital assets at
BlackRock noted that risk-on assets, such as stocks, commodities,
and high-yield bonds, perform well during periods of market
optimism and economic growth. Conversely, assets like gold are
sought after in times of uncertainty, providing a safe haven for
investors. Mitchnick drew parallels between Bitcoin and gold,
saying “gold shows a lot of the same patterns”, referring to their
temporary correlations with equities. He emphasized that the
long-term correlation between BTC and traditional financial assets
is close to zero. Related Reading: Solana (SOL) Consolidates in
Symmetrical Triangle – Analyst Reveals $160 Target On Breakout One
of BTC’s defining characteristics is its decentralized nature,
Mitchnick added. No single country or government controls it, he
said, which adds to its appeal as a global monetary
alternative. Mitchnick went on to highlight Bitcoin’s
scarcity, global reach and decentralized framework, describing it
as a “non-sovereign asset”. He pointed out that BTC has no specific
country risk and no counterparty risk, making it a compelling
option for investors looking to diversify their portfolios. At the
time of writing, the largest cryptocurrency on the market has given
back some of the gains made during Tuesday’s trading session, after
hitting a one-month high of $64,700. Currently, BTC is trading at
$63,220, down a slight 0.3% over the 24-hour period. Featured image
from DALL-E, chart from TradingView.com
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