According to on-chain data, BlackRock's iShares Bitcoin Trust (IBIT) currently holds over 500,000 BTC. This makes BlackRock the third-largest Bitcoin holder in the world, after the Bitcoin creator Satoshi Nakamoto and the cryptocurrency exchange giant Binance.
With a holding value of around $48 billion, BlackRock's influence in the cryptocurrency market is rapidly expanding.
BlackRock Aggressively Accumulating Bitcoin
In just 233 trading days since the launch of IBIT, BlackRock has acquired 2.38% of all existing Bitcoins. This reflects the company's trust in Bitcoin as a financial asset. BlackRock's Bitcoin holdings reached 500,380 units as of Monday, December 2nd.
Recently, the company made headlines with a
$680 million Bitcoin purchase, further solidifying its position in the market. BlackRock's shift towards Bitcoin aligns with the changing perspective of CEO Larry Fink, who once dismissed Bitcoin as "speculative" but now describes it as an "
independent asset."
This transformation has led to BlackRock's deep involvement in the cryptocurrency market. The company's U.S. Head of Thematic and Active ETFs, Jay Jacobs, recently
stated that Bitcoin could become a $30 trillion market. According to BeInCrypto, he also mentioned that there is more room for BTC adoption.
BlackRock's flagship product, the iShares Bitcoin Trust (IBIT), is a central element of its Bitcoin accumulation strategy. IBIT
recorded $40 billion in AUM earlier this year, setting a speed record in the ETF industry. On its first day of options trading, the fund
recorded over $425 million in sales, indicating tremendous institutional interest.
Four weeks ago,
IBIT surpassed the performance of BlackRock's gold ETF, demonstrating the rising significance of Bitcoin in traditional finance (TradFi). According to data from SoSoValue, IBIT continues to lead the Bitcoin spot ETF market.
This financial product recorded inflows of nearly $340 million on Monday. As of December 2nd, the cumulative net inflows were $32.08 billion, with Fidelity's FBTC following at $11.48 billion.
Institutional BTC Adoption Raises Concerns over Decentralization
BlackRock's Bitcoin strategy goes beyond ETFs. The company has also
increased its Bitcoin exposure through investments in MicroStrategy, reflecting its trust in Bitcoin's long-term value proposition and its intention to dominate the institutional Bitcoin market.
The company's initiatives, along with those of other traditional finance players, have legitimized Bitcoin as an asset class. However, not everyone welcomes this development.
Critics within the cryptocurrency community argue that institutional dominance goes against Bitcoin's founding principle of decentralization. As BlackRock accumulates such a large holding, there is a risk of centralization of control in a space designed to empower individuals over institutions.
"There was once a dream of Bitcoin... this is not it,"
lamented one user on X.
For some
critics, the increasing institutional acquisition of Bitcoin undermines the very purpose of decentralization. Corporations like BlackRock are becoming the largest holders.
Nevertheless, BlackRock's emergence as a major Bitcoin holder represents a significant shift in the cryptocurrency space. On one hand, it emphasizes the mainstream adoption of Bitcoin and its potential as a global financial asset. On the other hand, it raises questions about the role of large financial institutions in a space traditionally associated with grassroots financial sovereignty.
As IBIT leads and sets benchmarks, the company is poised to remain a key player in the cryptocurrency industry. However, the debate over whether this benefits or weakens Bitcoin's core principles is unlikely to fade easily.
