BlackRock’s Remarkable Journey from 0 to 122,600 Bitcoin (BTC) in Just Six Weeks
[TL; DR]
After its launch of spot Bitcoin ETFs, BlackRock has acquired more than $122,600 BTC.
BlackRock’s aggressive investment in bitcoin is likely to lure other traditional financial institutions to invest in BTC.
BlackRock is now the number one ranked firm among the 22 guru strategies.
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Introduction
Bitcoin has witnessed many developments since its launch about 15 years ago. At the beginning of 2023 bitcoin ordinals were introduced on the blockchain. Now, in 2024 the United States approved 11 bitcoin ETFs which has helped to increase funds inflow into the asset. Today, we focus on how BlackRock acquired 122,600 bitcoin for its BTC ETF within 6 weeks.
BlackRock’s Acquisition: Now Ranked 11th with $6.31 Billion Holdings
BlackRock, the world’s number one asset management firm, has broken the bitcoin acquisitions record a few weeks after launching its BTC ETFs. The firm’s BTC holding now accounts for 6% of bitcoin’s circulating supply. Also, BlackRock’s bitcoin purchases has placed it as the 11th largest BTC holder.
Basically, BlackRock has managed to purchase 122,600 bitcoin within six weeks. The firm started the journey to become one of the largest bitcoin holders in the world when it bought 228 BTC as a seed for its bitcoin ETF.
Its second purchase of 2,621 BTC, worth around $110.91 million in the first week after the BlackRock Bitcoin ETF approval was an indication of its investment appetite in decentralized digital assets. Now, the crypto market anticipates that it will also invest in Ethereum ETFs and subsequently ETH itself.
Interestingly, by the end of the second week after the BlackRock Bitcoin ETF launch the asset management company had acquired a total of 26,002 BTC, with a market value of over $1 billion at that time.
It was clear by that time that BlackRock aimed to make bitcoin an important part of its investment portfolio. Its aggressive acquisition of BTC indicates the wide acceptance of the digital asset as a worthwhile investment instrument. This should entice other bitcoin investors to increase the amount of the coin they hold.
BlackRock’s Strategic Investment in the Sixth Week and Bitcoin’s Market Resurgence
BlackRock continued its bitcoin acquisition spree in the third week as it added more than 41,000 BTC to its holdings, taking the total value to $1.7 billion. Although bitcoin retraced in the fifth week, BlackRock acquired 12,510 more BTC coins.
During the sixth week the bitcoin price surged to $50,000 prompting BlackRock to buy 33,474 more BTC, valued at around $692 million. Looking at how things evolved within the 6 weeks, the firm will likely continue to increase its stake in the crypto market.
Bitcoin Akin to Gold, Serves as a Safeguarding Asset, Especially amid Periods of Geopolitical Uncertainties
BlackRock’s entry into the crypto sector through bitcoin investments has created confidence which is likely to increase the adoption of crypto assets. And that should be a good bait for other large financial institutions to invest in bitcoin and other digital assets.
Larry Fin, BlackRock’s CEO, has likened bitcoin to gold and believes that it is a leading value safeguarding asset, especially in times of geopolitical turmoil. Since the bitcoin supply is limited it has the potential to generate more returns on investment than gold.
Fin told BeInCrypto that bitcoin is a worthwhile asset for storing value. He said to BeinCrypto, “I’m a believer because I believe it is an alternative source for wealth holding. I don’t believe [Bitcoin] will ever be a currency. I believe it is an asset class. But, we will create digital currencies and we will use the blockchain.”
Another X user and crypto enthusiast, Island Destination, believes that it is now impossible for the value of bitcoin to drop to zero as some crypto pessimists have expected. He/she said on X, “The scenario of Bitcoin going to zero does not exist anymore. BTC is playing much the same role as gold did in the early days of banking.”
In addition, Andrew Lokenauth, a crypto commentator, believes that many institutional investors are likely to invest in bitcoin, following BlackRock’s footsteps. He said on X, “BlackRock’s Bitcoin ETF is a big deal for Crypto, it would open up the $BTC market to a wider pool of investors and could lead to increased liquidity and price stability.”
Likewise, through its recent blog post, BlackRock confirmed the confidence it has in bitcoin. It posted on X.com, “The launch of spot bitcoin exchange-traded funds in the U.S. represents a scalable bridge from traditional finance into bitcoin, enabling mainstream access to bitcoin.”
BlackRock Tops Multifactor Investor Model
BlackRock’s range of investments has enabled it to earn the first spot among the top 22 guru strategies after scoring 87% based on the Multi-Factor Investor model, a brain child of Pim van Vliet. That accolade indicates that BlackRock has strong fundamentals and valuation, arising from its conservative factor investing.
This also indicates that the asset management firm seeks investment havens with high net pay-out yields, low volatility and strong demand. It is worth noting that BlackRock has a track record of avoiding high volatility products that discourage ordinary people from investing in them.
The fact that BlackRock has earned the top spot based on the Multi-Factor Investor model validates that it is the world’s market leader, no wonder why bitcoin investors are interested in its spot bitcoin ETFs. Many individuals and institutional investors are poised to buy bitcoin at a higher scale than before.
Conclusion
BlackRock has become one of the leading bitcoin holders after buying more than 122,600 bitcoin within six weeks. As a result, its bitcoin holding has a value of close to $2 billion. In the meantime, BlackRock recently earned the highest rank among the 22 guru strategies.
FAQs about BlackRock Bitcoin ETFs
What is BlackRock?
BlackRock is the world’s leading asset management company. It manages investments and funds for various institutions. Also, it offers different investment assets including spot bitcoin ETFs and crypto futures.
What is bitcoin supply and demand?
The supply of bitcoin is the quantity of BTC that are in circulation at any time. It also refers to bitcoin that the sellers are willing to sell. However, the total supply of bitcoin is limited to 21 million. On the other hand, the demand for bitcoin is the quantity of the coins that buyers are willing to buy within a given period.
