Recent news that BlackRock has raised its stake in Strategy to over 5% has generated significant interest and discussion about changes in the cryptocurrency market.
5% Stake by BlackRock in Strategy
According to recent filings, BlackRock now owns approximately 11.2 million shares of Strategy, increasing its stake from 4.09% in late 2024 to over 5% this year. Strategy continues to use Bitcoin as its treasury instrument of choice, holding more than 628,946 BTC, making it the world's largest corporate Bitcoin holder.
Surge of Ethereum ETF
Not only is the 5% stake of BlackRock in Strategy drawing attention. The iShares Ethereum Trust has also surpassed $10 billion in assets under management, becoming the third fastest ETF to reach that mark, doubling its assets within ten days. Additionally, U.S.-listed Ethereum ETFs saw $1.02 billion in net inflows in a single day, the largest figure since their inception.
Collision of Whales and Decentralization
The combination of ETFs and equity exposure raises big questions: Can Bitcoin remain a decentralized asset or become another commodity like gold or oil? With Strategy's BTC holdings in BlackRock's sights, could a price drop followed by buying the dip consolidate whale dominance? Will altcoins be casualties of this process? Such structural changes could fundamentally affect the principles of decentralization if one institution controls price and sentiment.
It should be noted that Bitcoin was initially meant to be a decentralized asset. With BlackRock's growing stake, there is a risk it may turn into just another Wall Street commodity. Attention to BlackRock's actions will be critical—whether it can maintain Bitcoin as an open asset or convert it into a centralized tool.
