BlackRock, the world’s largest asset management firm, with over $11.5 trillion in assets under management (AUM), has acquired 4295 BTC worth $429.5 million. The current purchase further cements BlackRock’s growing footprint in the crypto asset market.
The asset manager’s recent acquisition also highlights its confidence in bitcoin’s (BTC) potential as a store of value and a hedge against macroeconomic risks. The investment reflects a deliberate strategy by the management giant. BlackRock signals its confidence in the long-term growth of the crypto asset.
Asset Managers Buying BTC
BlackRock’s move comes amid a wave of institutional interest in crypto in BTC. For instance, Fidelity Investments recently doubled down on its commitment to crypto by adding over $196 million in BTC to its holdings. The move positioned the asset manager as one of the top dogs in the crypto space, with bitcoin forming a core component of its long-term investment strategy.
Following the substantial investment, Fidelity also went a step further by adding more bitcoin to its portfolio. In the last four days, the asset manager purchased approximately 5,200 BTC, worth more than $524.6 million. Before the latest acquisition, Fidelity held 199,237 BTC, worth roughly $19.3 billion.
BlackRock Becomes Largest Bitcoin Spot ETF
BlackRock’s purchase aligns with the firm’s prior steps toward embracing crypto. In 2023, BlackRock filed for a Bitcoin spot exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), widely regarded as a turning point for mainstream crypto adoption.
Early this year, the SEC approved a Spot Bitcoin ETF for BlackRock. The management firm became the world’s largest Bitcoin ETF, surpassing Grayscale’s Bitcoin Trust (GBTC). At the time, BlackRock held approximately $19.68 billion worth of BTC.
Amid the latest purchase, BTC was trading at over $100,400, with a market cap of over $1.9 trillion. In the past few days, the crypto asset has traded slightly above the $100,000 price level and pulled back to the $97-$99,000 price range.
Bitcoin as Reserve Asset
Meanwhile, the city council of Vancouver, Canada, has recently embraced BTC. The proposal suggests allocating some of the city’s financial reserves to Bitcoin. It cites Bitcoin’s potential as a hedge against inflation and a means to promote innovation and economic growth. The move aims to position Vancouver as a blockchain and crypto innovation hub.
In addition, the return of President-elect Donald Trump has partially fueled the move, which is seen as a step towards embracing innovation.
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