BlackRock Now Holds 2.77% BTC Supply

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BlackRock now holds 2.77% of the Bitcoin supply, with more than 582K BTC held in their custody. This puts the market value of their holdings at almost $55B, making them one of the largest institutional holders of Bitcoin.

The significance of a major traditional finance entity like BlackRock accumulating such a large position cannot be understated. It signals a growing acceptance of Bitcoin as a legitimate asset class within mainstream financial circles. This level of institutional participation is often interpreted by observers as a bullish indicator for the digital currency's long-term validation and market maturity.

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This week saw more than $1.2B in inflows into BlackRock’s iShares Bitcoin Trust ETF (IBIT), contributing significantly to two of the largest single day inflows into Bitcoin spot ETFs on 22nd and 23rd April, which saw a combined $1.85B in inflows. The week’s inflows mark a sharp reversal in spot ETF flows, amidst hopes of de-escalation in the trade war between the US and China. Notably, the inflows coincided with large outflows from the US Dollar, potentially hinting at investors escaping the USD into Bitcoin among other assets such as Gold, the Japanese Yen and the Euro.

These spot ETFs, which directly hold the underlying Bitcoin, serve as a critical bridge between traditional markets and the crypto ecosystem. The strong demand for IBIT, reflected in the $1.2B weekly inflow, highlights investors' appetite for regulated products. Such vehicles provide exposure to Bitcoin's price movements without requiring investors to manage private keys or self-custody.

The correlation noted between these ETF inflows and broader macroeconomic factors is also noteworthy. The movement from the US Dollar into alternative assets like Bitcoin and Gold during this period suggests a potential hedging strategy. Investors appeared to be reacting to the geopolitical climate, seeking assets that might preserve value amidst perceived instability in traditional markets.