Summary:
BlackRock's Bitcoin holdings have reached nearly $23.7 billion.
Recent acquisitions include $35 million in Bitcoin and $6.4 million in Ethereum.
BlackRock's holdings represent approximately 1.70% of total available Bitcoin.
On Sept. 25, BlackRock saw a record $184.4 million inflow into its Bitcoin ETF.
Concerns raised over Coinbase's custody practices regarding Bitcoin.
After less than a year of trading for its Bitcoin ETF, BlackRock has seen its Bitcoin holdings increase to nearly $23.7 billion. This milestone follows the asset manager's recent acquisition of $35 million worth of Bitcoin and $6.4 million of Ethereum earlier this week.
With this latest acquisition, BlackRock's Ethereum reserves now stand at 350,000 ETH, valued at around $989 million, according to data from blockchain analytics firm Arkham Intelligence.
BlackRock's BTC holdings are primarily managed through its iShares Bitcoin Trust (IBIT), allowing institutional investors direct exposure to Bitcoin. Currently, BlackRock's holdings represent approximately 1.70% of the total available Bitcoin.
In comparison, Grayscale, another major asset manager, holds around 258,671 BTC valued at $16.45 billion. However, Grayscale maintains a stronger position in Ethereum, with over 2.104 million ETH valued at roughly $5.45 billion, more than five times that of BlackRock's current Ethereum holdings.
On Sept. 25, BlackRock experienced a surge of $184.4 million in inflows into its spot Bitcoin ETF, marking the highest single-day inflow of any fund during the month, as reported by Farside data. This influx occurred shortly after the Federal Reserve decided to reduce interest rates by 50 basis points, influencing crypto investment and sentiment.
While BlackRock's increased crypto investments signal growing institutional interest, questions have been raised about the physical custody of these assets. Rumors suggest that Coinbase, the exchange serving as a custodian for BlackRock and other Bitcoin ETF issuers, may not be acquiring the actual Bitcoin requested by the funds but instead issuing "paper Bitcoin" or IOUs.
To clarify these concerns, Coinbase CEO Brian Armstrong stated on Twitter that all transactions involving the ETF are settled on the blockchain. Additionally, Bloomberg ETF analyst Eric Balchunas confirmed that BlackRock maintains its own blockchain node and consolidates its Bitcoin balances nightly, which are reported to Coinbase Prime.
Edited by Stacy Elliott.
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