BlackRock is back – buys Bitcoin worth $600M

BlackRock, the world’s largest asset management firm, reportedly purchased $600 million worth of Bitcoin on January 22. This marks its largest acquisition of the crypto this year. The recent BTC acquisition was spotted by blockchain analytics platform Arkham Intelligence. 

According to Arkham data, the purchases add to BlackRock’s substantial Bitcoin holdings, bringing its total holdings to 569,343 BTC. They are valued at about $58.32 billion, at current valuations. 

The company also holds other digital assets, including $3.7 billion worth of Ethereum, 74.5 million USDC, and coins like Colle AI, SPX6900, UBXS, TUA and MOG. This comes as the company, which currently holds about $11.5 billion AUM, saw a significant surge in Bitcoin exchange-traded fund (ETF) inflows on Wednesday. 

Lookonchain updates show spot BTC ETFs recorded a net inflow of 6,719 BTC, amounting to $700.94 million. Of this, BlackRock’s iShares Bitcoin Trust (IBIT) contributed 6,208 BTC, summing up to approximately $647.67 million.

Jan 22 Update:

10 #Bitcoin ETFs
NetFlow: +6,719 $BTC(+$700.94M)🟢#BlackRock(iShares) inflows 6,208 $BTC($647.67M) and currently holds 569,343 $BTC($59.4B).

9 #Ethereum ETFs
NetFlow: +18,108 $ETH(+$59.59M)🟢#BlackRock(iShares) inflows 16,959 $ETH($55.81M) and currently holds… pic.twitter.com/I2EAn9iABF

— Lookonchain (@lookonchain) January 22, 2025

BlackRock’s IBIT has been a key driver of institutional investment in Bitcoin. Since its launch in January 2024 alongside 11 other ETFs, the fund has achieved an exponential growth uptick of 114%, leading the way among institutions in BTC adoption.

At press time, the largest crypto by market cap is changing hands at $104,555. This is a 2.2% price downturn in the last 24 hours. It is, however, an uptick of about 4% from its intraweek trading levels.

BlackRock’s Larry Fink’s bullish stance on Bitcoin

Earlier today, Larry Fink, BlackRock’s CEO, offered a glimpse into the company’s long-term outlook for Bitcoin. This was during an interview at the World Economic Forum in Davos. 

As reported by Geiger Capital on X, Fink talked about the increasing interest in Bitcoin from global investment funds and asset management firms seeking BlackRock’s advice on allocation strategies.

BlackRock CEO Larry Fink on Bitcoin:

“If everyone adopted a 2% or 5% allocation, you could see Bitcoin at $700,000”

Incredible how far Bitcoin has come. 🟠 pic.twitter.com/psxP3aq4WI

— Geiger Capital (@Geiger_Capital) January 22, 2025

“Should we have a 2% allocation or a 5% allocation?” Fink asked, referring to questions posed by major institutional clients. He noted that widespread adoption of these allocation strategies could drive Bitcoin’s price to levels above $500,000 up to $700,000.

However, the CEO clarified that he was not promoting Bitcoin, but echoed that he sees the crypto’s potential as an investment instrument. 

Other BlackRock executives, like Samara Cohen, anticipate favorable conditions for the cryptocurrency market as President Trump begins his second-term as a pro-crypto leader. Cohen, the firm’s chief investment officer for ETFs and index instruments, told CNBC that regulatory clarity on crypto will enable BTC to experience another historic year.

“There will be progress made on FIT21, stablecoins, and definitions in taxonomy,” Cohen stated, “There will be progress made on stable coins. There will be progress made just on definitions in taxonomy.”

However, Cohen urged investors to remain cautious about making crypto investments. “Bitcoin is a risky asset. So, 15% in the context of Bitcoin is not an enormous move. Investors should expect volatility,” she reiterated. 

The ETF CIO predicts that Bitcoin’s long-term price trajectory will depend on the pace of adoption and acceptance among institutional and retail investors.

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