BlackRock, a prominent investment company, sets a new standard in cryptocurrency custody, surpassing platforms like Coinbase and Binance in terms of Bitcoin holdings.
BlackRock Surpasses Coinbase and Binance in Bitcoin
As of August 26, 2023, data from CryptoQuant reveals that BlackRock’s Bitcoin ETF, IBIT, now holds 745,357 BTC, making it the largest institutional custodian of Bitcoin. In comparison, Coinbase holds 706,150 BTC, while Binance retains 584,557 BTC. This shift occurred over a few months, marking the increasing significance of ETFs in institutional investment strategies.
BlackRock's Growing Position in Ethereum
While the focus has been on Bitcoin, BlackRock is also rapidly increasing its position in Ethereum. According to CryptoQuant, BlackRock’s Ethereum ETF (iShares) now holds 3.6 million ETH, just 200,000 ETH behind Coinbase’s 3.8 million ETH. Binance remains ahead with 4.7 million ETH, but BlackRock’s ETF accumulated 1.2 million ETH in less than two months.
Trends in Institutional Investments in Cryptocurrencies
The increasing interest in investing through ETFs coincides with a decrease in interest in centralized platforms. The inflows into exchanges have reached a historic low over the past 30 days. Despite historically low activity in markets, the shift in investment toward ETFs seems to indicate a new trend among institutional investors.
BlackRock's transition to a leading player in cryptocurrency custody introduces new dynamics in an industry that has traditionally been skeptical of traditional financial institutions.
