BlackRock Now Owns Nearly 350,000 Bitcoins

BlackRock's entry into Bitcoin has been a major turning point for the industry. Historically, BlackRock CEO Larry Fink was a vocal skeptic of Bitcoin

BlackRock is now the third-largest holder of Bitcoin in the world, with an estimated 350,000 BTC in its various ETF products. This puts BlackRock behind only Satoshi Nakamoto and Binance in terms of BTC holdings.

BlackRock's entry into the Bitcoin market has been a major turning point for the industry. For years, BlackRock CEO Larry Fink was a vocal skeptic of Bitcoin, dismissing it as a speculative and potentially dangerous asset. However, Fink's stance has undergone a radical transformation over the past years. He now sees Bitcoin as an “international asset” with transformative potential for finance. This change of heart has been a catalyst for BlackRock's deepening involvement in the cryptocurrency market.

BlackRock's flagship product, the iShares Bitcoin Trust (IBIT), is a central component of this strategy. Launched earlier this year, IBIT quickly gained traction among institutional investors looking for secure exposure to Bitcoin. As a result, BlackRock's holdings have neared 350,000 BTC. For perspective, this amount is only exceeded by Satoshi Nakamoto's estimated 1.1 million BTC stash and Binance's holdings, which are reported to be around 550,000 BTC.

“Didn't realize US ETFs are on track to pass Satoshi in Bitcoin held in October. BlackRock alone is already #3 and on pace to be #1 late next year, and will likely stay there for a very very long time,” said Bloomberg ETF analyst Eric Balchunas.

Interestingly, the balance of power in the ETF market was very different just a few months ago. Grayscale was leading the scene, with more Bitcoin holdings than BlackRock. However, the situation has now shifted, with Grayscale grappling with customer redemptions as investors pull out. The primary factor behind this exodus is Grayscale's steep 2.5% fees, compared to the industry average of 0.25%.

BlackRock's growing presence in the crypto space has opened the door for more traditional financial players to enter the market. Recent filings show that major institutions like Capula Management, Goldman Sachs, DRW Capital, and several investment and retirement boards are now piling into BlackRock's iShares Bitcoin Trust.