BlackRock, the largest asset manager in the world with nearly $10 trillion worth of assets under management, launched its Bitcoin (BTC) ETF earlier this year in January. The BTC ETF launch led to a significant market rally, and BTC hit a new all-time high of $73,737 in March. The ETFs were a big hit, witnessing significant inflows over the last six months.
LookOnChain, a cryptocurrency analysis company, reports that BlackRock presently owns 337,036 BTC, valued at $21.81 billion. The company just increased its holdings by 1000 BTC, worth $64.69 million, demonstrating its continued bullishness towards the digital currency.
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Why is BlackRock bullish on Bitcoin?
BlackRock CEO Larry Fink was not always bullish on BTC. Fink was skeptical about cryptocurrencies up until very recently. Fink has stated on CNBC, “As you know, I was a skeptic, I was a proud skeptic […] I studied it, learned about it, and I came away saying, ‘Okay, my opinion five years ago was wrong.’“
While speaking to Jim Cramer, Fink called Bitcoin “digital gold.” He also stated that people should ‘absolutely’ buy BTC for the long term.
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Fink’s change of perception is likely due to him increasing his awareness about cryptocurrencies. There has also been an increase in demand for BTC-related products from clients, pushing BlackRock to dip its toes in new waters.
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Bitcoin will likely hit a new all-time high later this year. CoinCodex data suggests BTC might surpass the $80,000 level in early August. Many analysts have also predicted BTC to eventually breach the $1 million mark, albeit it may take some time.
