As of January 2, 2024, BlackRock, the world’s largest asset manager, found a strong concentration of Bitcoin (BTC) and Ethereum (ETH), deeming them the only cryptocurrencies worth investing in.
With a staggering $56.41 billion allocated to its cryptocurrency portfolio, Bitcoin and Ethereum dominate, accounting for over 99% of the portfolio’s value.
Bitcoin and Ethereum Dominance in BlackRock Strategy
Bitcoin tops the list with 550,643 BTC assets worth $52.78 billion at the current price of $95,855 per coin, representing a gain of $1.28 billion (+2.48%), according to data obtained by Finbold from Arkham Intel.
Ethereum follows with 1.037 million ETH worth $3.55 billion at $3,425 per token and up $89.61 million (+2.59%). These two assets form the core of BlackRock’s approach to cryptocurrencies, reflecting the company’s belief in their long-term potential.
The rest of BlackRock’s portfolio includes small research assets in the USDC stablecoin valued at $74.67 million and alternative tokens such as COLLE ($303,080), SPX ($78,250), TUA ($29,100), UBXS ($24,180) and MOG ($16,490).
BlackRock’s Repositioning and Bitcoin ETF’s Success
BlackRock’s move from skepticism to adoption in the cryptocurrency space has been transformative. After initially hesitant, the firm launched its Bitcoin ETF after receiving SEC approval following Grayscale’s legal battle with the SEC over a similar product.
BlackRock’s Bitcoin fund has achieved historic success, surpassing $50 billion in assets under management (AUM) in just 11 months, a feat Bloomberg attributes to pushing Bitcoin’s price above $100,000 earlier this year.
The fund’s unprecedented performance has fueled speculation that its AUM could outperform gold ETFs in the coming years, signaling a sharp shift in institutional interest from traditional assets to digital ones.
Nate Geraci, CEO of the ETF Store, predicted that if the price of Bitcoin doesn’t fall in 2025, BlackRock’s Bitcoin ETF (IBIT) could overtake SPDR Gold Shares, the world’s largest gold ETF.
Limited interest outside of Bitcoin and Ethereum
Earlier this year, BlackRock’s Robert Mitchnick noted that there was “very little interest” in other cryptocurrencies among their investors, indicating that the upside potential for altcoins may remain limited.
While Bitcoin and Ethereum dominate BlackRock’s crypto strategy, the market as a whole is evolving. Companies like Franklin Templeton and VanEck are exploring blockchain projects like Solana (SOL), and there is optimism that altcoins could get a boost from future ETF approvals.
Franklin Templeton openly supported Solana, calling it one of the most promising blockchain projects. Meanwhile, XRP ETF filings from WisdomTree, Bitwise and Canary Capital highlight growing institutional interest in expanding cryptocurrency offerings beyond the two heavyweights.
Solana’s futures ETF filings and growing interest in the XRP ETF suggest a trend towards diversification of the institutional landscape. Analysts like Bloomberg’s Eric Balchunas believe the approval of futures ETFs could pave the way for spot ETFs, giving altcoins like Solana and XRP institutional exposure.
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