BlackRock Can’t Stop Buying Bitcoin

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As a seasoned investor with over two decades of experience under my belt, I must admit that the recent surge in inflows into BlackRock’s Bitcoin ETF (IBIT) has piqued my interest. With daily inflows exceeding $300 million and approaching the $2 billion mark within just a fortnight, it’s clear that we are witnessing an unprecedented wave of institutional adoption.

Each fresh day brings another wave of investments into BlackRock’s Bitcoin ETF (IBIT), leading to increased cryptocurrency acquisitions by the prominent hedge fund in their digital wallets.

Based on SoSo Value’s report, the IBIT Bitcoin ETF experienced approximately $317 million in investments within the past 24 hours. In contrast, the previous day saw only about $42.98 million invested, which means that the daily inflow increased by roughly 737% compared to the day before.

Inflows into ETFs directly from BlackRock have continued unabated for almost two weeks now. During this time, the amount of money raised by IBIT is already approaching a staggering $2 billion.

It’s typical for investments into Exchange-Traded Funds (ETFs) to be followed by the fund issuer purchasing an equivalent amount of cryptocurrency.

BlackRock’s Bitcoin

Previously, it was common knowledge that BlackRock’s iShares Bitcoin Trust ETF had 392,121,2103 BTC in collateral, which translates to around $26.27 billion at current prices. If an estimated additional 637 BTC are added with the recent inflows, the total value will surpass $27 billion today.

So long as Bitcoin ETF inflows persist, it appears BlackRock will keep dominating the market. Yet, being one of the biggest cryptocurrency owners already, it seems that the ETF serves more as a pretext. In reality, BlackRock’s main objective might be acquiring actual ownership of Bitcoin itself.

Where BlackRock will stop in its crypto ambitions is the major question. 

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2024-10-24 14:20