BlackRock, the world’s largest asset manager, is accumulating Bitcoin (BTC) and Ethereum (ETH) once again, as institutional demand for crypto-based Exchange-Traded Funds (ETFs) ramps up. The move comes despite ongoing market volatility and heightened bearish sentiment, highlighting how institutional appetite for crypto exposure remains firm even as fear and uncertainty spread across the market.
BlackRock Ramps Up Bitcoin And Ethereum Buying
From April 6 to 10, BlackRock recorded a strong wave of inflows into its spot crypto ETFs, highlighting sustained institutional demand for digital assets. The recent inflows also signaled a shift in sentiment among investors, who had previously adopted a risk-off stance amid geopolitical tensions and macroeconomic conditions that fueled price declines in the crypto market.
In total, the investment company attracted about $780 million across its Bitcoin and Ethereum ETFs, a staggering figure that shows renewed interest in regulated crypto exposure. SoSoValue reports that the bulk of these inflows went into BlackRock’s Bitcoin ETF, iShares Bitcoin Trust (IBIT), which brought in roughly $612 million. Meanwhile, the firm’s Ethereum ETF, iShares Ethereum Trust (ETHA), added approximately $168 million over the same period.
As new shares were issued, authorized participants stepped in to facilitate the process, requiring custodians to buy an equivalent amount of real BTC and ETH. Those assets are now being held by Coinbase Custody, the primary custodian for BlackRock’s crypto ETFs. To maintain full backing, the firm acquires Bitcoin and Ethereum through on the open market or over-the-counter (OTC) deals. BlackRock, for its part, manages the funds without using its own corporate capital.
Notably, the latest inflow is not a direct purchase on BlackRock’s balance sheet, but rather investors acquiring more crypto ETFs, thereby increasing buying pressure on BTC and ETH. The weekly total ranks among the strongest performances seen in recent months for crypto ETFs. If sustained, the momentum could help support the price of Bitcoin and Ethereum, which recorded major gains of more than 3% during the same week that ETF inflows picked up.
Following the latest inflows, BlackRock’s total Bitcoin and Ethereum on its balance sheet have increased to $56.8 billion and $6.92 billion, respectively. They now hold approximately 791,284 BTC via IBIT and 3,008,094 ETH via ETHA.
Institutions Resume Aggressive BTC Accumulation
Bitcoin accumulation has increased not only through ETFs but also among whales and corporate investors. New reports reveal that whales have abruptly stopped aggressively selling BTC and may be looking to buy as the market continues to rebound.
Strategy, the market intelligence company founded by Michael Saylor, is also buying Bitcoin, increasing its already substantial holdings. On April 13, Saylor took to X to announce that the company had added another batch of Bitcoin to its balance sheet.
This time, Strategy acquired 13,927 BTC, worth approximately $1 billion at $71,902 per coin. The purchase brings the company’s total holdings to a staggering 780,897 BTC, valued at around $59.02 billion at $75,578 per coin. This move underscores Strategy’s unwavering and increasingly aggressive accumulation strategy, as the company doubles down on its long-term conviction in Bitcoin despite volatile market conditions.
Featured image created with Dall.E, chart from Tradingview.com