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BlackRock Flips Grayscale: Becomes World’s Largest Institutional Holder of Bitcoin

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BlackRock Flips Grayscale

BlackRock, the world’s largest asset manager, has surpassed Grayscale’s Bitcoin Trust (GBTC) in its Bitcoin holdings.

BlackRock’s iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF launched just three months ago, has accumulated over 288,670 Bitcoins, according to on-chain data. This outpaces GBTC’s holdings, which currently sit at around 287,450 Bitcoins.

Rapid Growth for BlackRock’s Bitcoin ETF

The rapid growth of IBIT has surprised many analysts. Launched in March 2024, the ETF saw a net inflow of over $1 billion within its first four days of trading. This suggests strong investor demand for a regulated and transparent way to access Bitcoin through traditional investment channels.

GBTC Faces Outflows

Grayscale’s GBTC, which has long been the dominant force in institutional Bitcoin investment, has faced significant outflows in recent months. This could be due to a number of factors, including concerns about GBTC’s premium over the underlying price of Bitcoin and the lack of transparency regarding its holdings.

What This Means for the Future of Bitcoin

BlackRock’s entry into the Bitcoin market is a major development. It signals growing institutional confidence in the long-term potential of cryptocurrency and could pave the way for wider adoption by other major asset managers.

“This is a watershed moment for Bitcoin,” said Sarah Miller, a crypto analyst at Bloomberg Intelligence. “BlackRock’s involvement legitimizes Bitcoin as an investable asset class and could attract a wave of new institutional capital.”

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