BlackRock Reaches $23.7 Billion in Bitcoin Reserves with New Acquisition

Table of Contents

Follow Us @

BlackRock Reaches $23.7 Billion in Bitcoin Reserves with New Acquisition
-Trending Marketing news, content marketing, latest Ways to rank your website, marketing discoveries, Local SEO, seo and social media marketing services. enjoy your stay on our website.

Wall Street giant BlackRock has seen its Bitcoin holdings reach around $23.7 billion after less than a year of operating its Bitcoin index fund (ETF). The company reached this milestone after acquiring over US$35 million in Bitcoin and US$6.4 million in Ethereum last week, according to data from a blockchain analysis by Arkham Intelligence.

With this latest acquisition, BlackRock’s Ethereum reserves now total 350,000 ETH, valued at approximately $989 million. BlackRock manages its Bitcoin holdings primarily through its iShares Bitcoin Trust (IBIT). The ETF offers institutional investors direct exposure to Bitcoin. Currently, its holdings represent around 1.70% of all Bitcoin available on the market.

BlackRock’s recent asset expansion puts it in the spotlight compared to other large asset managers. Grayscale, for example, holds around 258,671 BTC, valued at approximately $16.45 billion.

YOU MAY HAVE MISSED:

Hasan Fawzi Becomes DK OJK Supervises Crypto Assets, This Requests Industry Players

However, Grayscale still maintains a stronger position in Ethereum, with over 2.1 million ETH, valued at around $5.45 billion. This represents more than five times the current amount of Ethereum under BlackRock’s management.

BlackRock, Bitcoin whale

On September 25, BlackRock recorded an inflow of $184.4 million into its spot Bitcoin ETF. The inflows marked the largest single-day value for the fund during the month. This increase occurred shortly after the Federal Reserve’s decision to reduce interest rates by 50 basis points, a move that has been widely discussed in financial markets throughout 2024 and which may have influenced investment sentiment in cryptocurrencies.

Despite growing institutional interest in cryptocurrencies, speculation has emerged about the physical custody of these assets. Rumors are circulating online alleging that Coinbase, which serves as custodian for BlackRock and other Bitcoin ETF issuers, would not be acquiring the physical Bitcoin requested by the funds. Instead, it would be issuing “paper Bitcoin” or promises to pay (IOUs). To clarify these doubts, Coinbase CEO Brian Armstrong stated on his social networks that all transactions related to the ETF are settled on the blockchain.

Additionally, Bloomberg ETF analyst Eric Balchunas confirmed that BlackRock maintains its own node on the blockchain and consolidates its Bitcoin balances daily, reporting them to Coinbase Prime. This reinforces transparency and security in the custody process of cryptocurrencies acquired by the fund.

YOU MAY HAVE MISSED:

Drex can facilitate the purchase of public bonds and replace Tesouro Direto, says BC