BlackRock, the world’s largest asset manager, is once again accumulating Bitcoin (BTC) and Ethereum (ETH), as institutional demand for crypto-based exchange-traded funds (ETFs) accelerates. This decision comes despite continued market volatility and the intensification of bearish feeling, highlighting how institutional appetite for crypto exposure remains firm even as fear and uncertainty spread across the market.
BlackRock Accelerates Bitcoin and Ethereum Purchases
From April 6-10, BlackRock saw a strong surge of inflows into its spot crypto ETFs, highlighting sustained institutional demand for digital assets. Recent influxes have also signaled a change of feeling among investors, who had previously adopted a risk-averse attitude amid geopolitical tensions and macroeconomic conditions that have fueled price declines in the crypto market.
In total, the investment firm has attracted around $780 million through its Bitcoin and Ethereum ETFs, a staggering figure that shows renewed interest in regulated crypto exposure. SoSoValue reports that the majority of these flows were directed towards BlackRock’s Bitcoin ETF, iShares Bitcoin Trust (IBIT)which grossed approximately $612 million. Meanwhile, the company’s Ethereum ETF, iShares Ethereum Trust (ETHA)added about $168 million during the same period.
As new shares were issued, authorized participants stepped in to facilitate the process, requiring custodians to purchase an equivalent amount of real BTC and ETH. These assets are now held by Coinbase Custody, the primary custodian of BlackRock’s crypto ETFs. To maintain full support, the company acquires Bitcoin and Ethereum via the open market or over-the-counter (OTC) offers. BlackRock, for its part, manages the funds without using its own share capital.
It should be noted that the latest influx is not a direct purchase into BlackRock’s balance sheet, but rather investors acquiring more crypto ETFs, thereby increasing buying pressure on BTC and ETH. The weekly total ranks among the strongest performances seen in recent months for crypto ETFs. If sustained, this momentum could help support the price of Bitcoin and Ethereum, which recorded significant gains by more than 3% in the same week that ETF inflows increased.
Following the latest inflows, BlackRock’s total Bitcoin and Ethereum on its balance sheet has increase at $56.8 billion and $6.92 billion, respectively. They now hold approximately 791,284 BTC via IBIT and 3,008,094 ETH via ETHA.
Institutions Resume Aggressive BTC Accumulation
Bitcoin accumulation has increased not only through ETFs, but also among whales and corporate investors. New reports reveal that whales have abruptly stopped aggressively selling BTC and could look to buy as the market continues to rebound.
Strategy, the market intelligence company founded by Michael Saylor, is also buy bitcointhus increasing its already significant assets. On April 13, Saylor went to X’s house to announce that the company had added another batch of Bitcoin to its balance sheet.
This time, Strategy acquired 13,927 BTC, worth around $1 billion at $71,902 per coin. This purchase brings the company’s total holdings to 780,897 BTC, valued at approximately $59.02 billion, at $75,578 per coin. The move underscores Strategy’s steadfast and increasingly aggressive accumulation strategy, as the firm doubles down on its long-term conviction in Bitcoin despite volatile market conditions.
Featured image created with Dall.E, chart from Tradingview.com
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