Blackstone, the world’s largest alternative asset manager, has ventured into cryptocurrency for the first time by purchasing shares in BlackRock’s ETF.
Blackstone's Investments in Crypto
According to a May 20 filing, Blackstone bought around $1.08 million worth of shares in the iShares Bitcoin Trust ETF (IBIT). At this time, the company manages approximately $1.2 trillion in assets. Blackstone reported holding 23,094 shares of IBIT, which are part of its Alternative Multi-Strategy Fund, valued at $2.63 billion.
Blackstone's Stance on Cryptocurrencies
Despite recent investments in IBIT, Blackstone remains cautious about cryptocurrencies. In September 2019, co-founder and CEO Stephen Schwarzman expressed skepticism about the use of cryptocurrencies as money, calling it "pretty odd". He noted that he is not a fan of Bitcoin due to difficulties in understanding the technology.
BlackRock's Success in the Bitcoin Market
Meanwhile, BlackRock’s IBIT has seen success, attracting over $46 billion since its launch in January 2024. Bloomberg’s ETF analyst Eric Balchunas noted that BlackRock has become the second-largest holder of Bitcoin globally, trailing only Satoshi Nakamoto. He believes that BlackRock could surpass Nakamoto's holdings by next summer.
Blackstone's investment in BlackRock's ETF highlights large financial institutions' interest in cryptocurrencies, although their approach remains cautious. The success of IBIT also indicates strong institutional trust in Bitcoin's future.
