Blackstone Makes Its First Bitcoin Bet by Investing in BlackRock's Spot Bitcoin ETF

In a significant shift in institutional sentiment, Blackstone, the world's largest alternative asset manager, has disclosed a modest investment in BlackRock's spot Bitcoin ETF.

In a surprising yet significant move, Blackstone (NYSE: BX), the world’s largest alternative asset manager, has made a modest investment in iShares Bitcoin Trust (NYSE: IBIT). This marks the first time the private equity giant has disclosed any holdings in cryptocurrency.

According to a May 20 SEC filing, Blackstone’s Alternative Multi-Strategy Fund (BTMIX) acquired 23,094 shares of IBIT by the end of Q1 2025. At the last closing price on March 31, 2025, this investment was valued at approximately $1.08 million.

BTMIX, which is managed by Blackstone and holds about $2.63 billion in assets, is known for its diverse investment strategy, spanning multiple asset classes and geographies.

While this investment is relatively small compared to Blackstone’s total assets under management, which amounts to $1.2 trillion, it is nonetheless a symbolic moment. It marks the first time Blackstone has publicly backed a crypto-related asset.

Previously, Blackstone executives, including co-founder and CEO Stephen Schwarzman, have expressed skepticism towards cryptocurrencies. Back in 2019, Schwarzman expressed his support for blockchain technology but had doubts about cryptocurrencies as a form of money.

However, despite his previous stance, Blackstone’s recent IBIT stake suggests a subtle shift in strategy. This change might be driven by several factors, including the growing institutional demand for crypto, the maturing market infrastructure, and the increasing sophistication of investment vehicles.

By opting to gain exposure to Bitcoin via BlackRock’s (NYSE:BLK) ETF rather than through direct Bitcoin holdings, Blackstone may also be signaling a preference for compliance and risk management. This aligns with the firm’s overarching investment philosophy, which prioritizes responsible and sustainable investing practices.

BlackRock’s IBIT has been a standout performer in the ETF market since its approval in early 2024. With net inflows exceeding $46 billion, the product has become the primary vehicle for institutions to gain exposure to Bitcoin.

Earlier this month, Bloomberg ETF analyst Eric Balchunas noted that BlackRock is now the second-largest holder of Bitcoin, with only the pseudonymous creator, Satoshi Nakamoto, estimated to hold more. At the current rate of institutional buying, Balchunas predicts that BlackRock will surpass Satoshi’s estimated holdings by mid-2026.

This signals the increasing role of institutions in shaping the future of the crypto market. As more traditional financial players like Blackstone and BlackRock enter the space, the industry is poised for further growth and integration with mainstream finance.