BlackRock bought $2.4 billion worth of Bitcoin this week, paving the way for institutional adoption.
BlackRock, the world’s largest asset manager, reportedly bought about $2.4 billion worth of Bitcoin this week in preparation for the launch of its Bitcoin ETF. This massive purchase, along with an additional $300 million worth of Bitcoin raised in just two days, are signs that BlackRock now believes in digital assets. The tide is changing as institutional interest in cryptocurrency grows.
Analysts believe BlackRock’s investments could influence broader market sentiment. The company’s move potentially endorses Bitcoin as a mainstream asset in finance, suggesting that other institutional players may move to diversify their portfolios given the massive demand for Bitcoin ETFs.
With institutional investment at a scale never seen before in the cryptocurrency industry, experts suggest continued buying by leading companies could be the starting point for a potential rally. Blackrock’s entry into the Bitcoin ETF market reflects how traditional financial institutions have turned to digital assets.
BlackRock’s iShares, in particular, is trying to appeal to investors who want to diversify beyond the so-called Magnificent Seven (Apple, Amazon, Meta, Alphabet, Microsoft, Nvidia and Tesla). The company this month launched the iShares Top 20 US Stocks ETF, which consists of the 20 largest U.S. stocks by market capitalization.
The company’s head of U.S. iShares products said the ETF’s mission is “to provide an easy and accessible way to capitalize on large-cap innovation, whether it’s in the tech-focused Nasdaq space or more broadly within the S&P (500%).” mentioned. ).”
On Wednesday, BlackRock achieved a major milestone in its Bitcoin ETF market, recording the largest inflow since the investment fund launched in January.
About $872 million flowed into BlackRock’s iShares Bitcoin Trust on Wednesday, breaking the fund’s daily record and highlighting strong demand for the Bitcoin ETF, according to Bloomberg.
BlackRock’s total Bitcoin holdings currently stand at 429,185 BTC, worth approximately $31.04 billion. This accounts for approximately 2.04% of the total supply of Bitcoin and is capped at 21 million coins.
The recent inflows are being linked to the ‘Trump trade’ as President Donald Trump gains momentum in betting markets ahead of the upcoming Election Day on November 5.