According to on-chain data, BlackRock’s aggressive push into BTC has led to its holdings reaching nearly 350,000 BTC, making it the third-largest holder globally, after Satoshi Nakamoto and Binance.
As BlackRock continues to establish itself as a dominant player in the crypto asset space, interest in its various ETF products and institutional investor involvement is steadily growing.
BlackRock’s entry into the BTC industry marks a significant turning point. For a long time, BlackRock’s CEO, Larry Fink, was highly skeptical of BTC, viewing it as a speculative and potentially dangerous asset.
However, in recent years, his stance has completely shifted.
Fink now sees BTC as an “international asset” with the potential to revolutionize the financial industry. This change in perspective has driven BlackRock’s deeper involvement in the crypto asset market.
The company’s flagship product, iShares IBIT, is a central component of this strategy.
Launched earlier this year, IBIT quickly gained traction among institutional investors seeking secure BTC exposure. As a result, BlackRock’s BTC holdings have approached 350,000.
It is estimated that Satoshi Nakamoto’s BTC reserves total 1.1 million, while Binance holds approximately 550,000 BTC.
Bloomberg ETF analyst Eric Balchunas noted:
It’s surprising that a U.S. ETF might surpass Satoshi Nakamoto at the BTC summit in October. BlackRock alone already ranks third and could become the top holder by the end of next year, likely maintaining that position for a long time.
Interestingly, just a few months ago, the balance of power in the ETF market was quite different. Grayscale was leading, holding more BTC than BlackRock.
However, the situation has changed, with Grayscale struggling to cope with client redemptions as investors withdraw their funds.
The main reason for the exodus is Grayscale’s high fee of 2.5%, compared to the industry average of 0.25%.
BlackRock’s growing presence in the crypto asset sector has paved the way for more traditional financial firms to enter the market.
Recent filings show that major institutions like Capula Management, Goldman Sachs, and DRW Capital have been acquiring shares of BlackRock’s iShares IBIT.
Undeniably, ETFs have played a crucial role in establishing crypto assets as a legitimate asset class, but there remains division within the crypto community.
Many believe that large financial institutions increasingly contradict the foundational principles of BTC. For these critics, institutional control in the crypto asset space erodes the original spirit, transferring power back to the entities BTC was designed to bypass.
As one commentator noted, “Isn’t this contrary to the original intent of ‘decentralization’? BlackRock is set to become the largest custodian, and there’s nothing more centralized than that.”