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- BlackRock’s $56.41 billion crypto portfolio overwhelmingly favors Bitcoin and Ethereum, making up over 99% of its holdings.
- CEO Larry Fink’s focus on Bitcoin and Ethereum underscores limited institutional interest in altcoins, reflecting concentrated investor sentiment.
BlackRock, the world’s largest asset manager, has doubled down on its belief that only Bitcoin and Ethereum are worth gambling with cryptocurrencies. As of January 2, 2024, the firm’s crypto portfolio of a whopping $56.41 billion is heavily dominated by those two assets, which account for more than 99% of its holdings, according to for Arkham Intel.
The leader, BlackRock holds 550,643 BTC, valued at $52.93 billion, with Bitcoin currently trading at $96,125. Ethereum follows with 1.037 million ETH, a total value of $3.58 billion at $3454 per token. Bitcoin recently saw a modest gain of 2.79%, adding $1.53 billion to its value, while Ethereum posted a gain of 2.59%, increasing by $89.61 million.
Notably, BlackRock CEO Larry Fink characterized Ethereum as “not a currency, but an asset,” reflecting the company’s strategic focus. BlackRock is now ranked as the 12th largest holder of Ethereum globally, with 993,591 ETH, representing 0.12% of the total asset supply.
BlackRock’s crypto ambitions could surpass gold
BlackRock’s journey into the cryptocurrency world has not been smooth. Initially skeptical, the company launched its Bitcoin ETF after receiving SEC approval, a significant milestone spurred by Grayscale’s legal victory against the SEC. The ETF’s outstanding performance helped push the price of Bitcoin past $100,000 earlier this year, and assets under management topped $50 billion in just 11 months.
The ETF’s rapid growth has fueled speculation that BlackRock’s crypto investments could one day eclipse gold ETFs. Nate Geraci, CEO of ETF Store, predicts that the company’s Bitcoin ETF could outperform SPDR Gold Shares, the leading gold ETF, by 2025, provided Bitcoin maintains its upward momentum.
BlackRock’s focus on Bitcoin and Ethereum reflects investor sentiment, with the firm’s Robert Mitchnick previously saying there is “very little interest” among their clients in other cryptocurrencies. That view highlights the limitations altcoins face in gaining institutional traction.
Alternative tokens and new trends
Despite its heavy concentration in the first two cryptocurrencies, BlackRock’s portfolio includes research stakes in stablecoins like USDC ($77.40 million) and lesser-known tokens like COLLE, SPX and MOG, although they account for a fraction of the total.
Meanwhile, competitors like Franklin Templeton and VanEck have ventured into blockchain projects, including Solana, which Franklin Templeton considers one of the most promising blockchain innovations. Similarly, WisdomTree and others have filed ETF filings for XRP, as CNF previously reported.
As Solana and XRP gain traction, analysts like Bloomberg’s Eric Balchunas believe futures-based ETFs could pave the way for spot ETFs, creating a wider path for altcoin adoption.
BlackRock’s Ethereum-focused ETF marked another milestone for the asset manager. Approved by the SEC earlier this year, the fund raised the profile of Ethereum as a blockchain platform for decentralized applications and smart contracts, in addition to its status as an asset of institutional interest.
