This article is available in Spanish.
In less than nine months since the launch of its Bitcoin Exchange Traded Fund (ETF), following the approval of these investment vehicles by the US Securities and Exchange Commission (SEC), asset manager BlackRock has established itself as the largest Bitcoin fund in the world.
A story about two titans in Bitcoin and Ethereum companies
According to on-chain data from blockchain analytics platform Arkham, BlackRock has been aggressively expanding its offering Bitcoin ownership through its ETF, known as IBIT, in recent months.
Despite recent market volatility, which saw Bitcoin’s price drop significantly on August 5 and September 6, BlackRock continued to buy more Bitcoin, supporting not only the value of the token but also its own asset base.
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As of September 25, BlackRock’s possessions have reached approximately 358,000 BTC, valued at approximately $22.76 billion, representing approximately 1.70% of Bitcoin’s total supply of 21 million.
By comparison, BlackRock’s Bitcoin holdings exceed those of Grayscale, another major crypto asset manager in the sector, by nearly 100,000 BTC. Shades of gray at the moment holds approximately 258,671 BTC, valued at $16.45 billion, highlighting the significant gap BlackRock has created in the BTC investment landscape.
While BlackRock has taken a commanding lead in Bitcoin, Grayscale maintains an edge Ethereum (ETH) holdings. Arkham’s data shows that Grayscale owns 2.104 million ETH, valued at approximately $5.45 billion based on the current trading price of $2,600 per ETH. In contrast, BlackRock’s Ethereum holdings amount to just 349,970 ETH, worth approximately $910 million.
BlackRock Reinforces Bitcoin Stance
BlackRock’s support for Bitcoin goes beyond mere investments; it includes a strong endorsement of the technology underlying the cryptocurrency. In a recent one interview Joining Bloomberg, Robbie Mitchnick, head of digital assets at BlackRock, challenged the prevailing idea that Bitcoin should be categorized as a “risk-on” asset.
During Tuesday’s interview, Mitchnick noted that while Bitcoin has recently shown a high correlation with U.S. stocks, this relationship can be misleading.
The head of digital assets at BlackRock noted that risky assets such as stocks, commodities and high-yield bonds perform well during periods of optimism in the market and economic growth. Conversely, assets such as gold are sought after in times of uncertainty, providing investors with a safe haven.
Mitchnick drew parallels between Bitcoin and gold, saying that “gold exhibits many of the same patterns,” referring to their temporal correlations with stocks. He emphasized that the long-term correlation between BTC and traditional financial assets is close to zero.
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One of BTC’s defining characteristics is its decentralized nature, Mitchnick added. No country or government controls it, he said, increasing its appeal as a global monetary alternative.
Mitchnick then highlighted Bitcoin’s scarcity, global reach, and decentralized framework, describing it as a “non-sovereign asset.” He pointed out that BTC carries no specific country risk and no counterparty risk, making it an attractive option for investors looking to diversify their portfolios.
At the time of writing, the market’s largest cryptocurrency has given back some of the gains made during Tuesday’s trading session after hitting a one-month high of $64,700. Currently, BTC is trading at $63,220, down slightly by 0.3% over 24 hours.
Featured image of DALL-E, chart from TradingView.com
