BlackRock Bitcoin $75B Bet: 700,000 BTC and the Digital Gold Vision

How BlackRock Bitcoin reserve escalated to 700,000 BTC Worth $75B

Larry Fink, clears the BlackRock Bitcoin collection that he was not shooting the breeze, describing it as “Digital Gold” two years ago, but actually backed it with a huge investment. When it was around $30,000, the largest asset manager showed the value of this vitual gold as a store of value similar to hard gold, and now the BlackRock Bitcoin hold reserves around $75 billion as on date. 

Source: X

Is this move an endorsement that helped legitimize Digital Currency further in the eyes of traditional finance?And did the organisation buy it all of a sudden, in a jeffy?

As per the CoinMarketCap the current price of the BTC is $108,980 with a surge of 0.73% in today’s valuation. Total supply is 19.88M BTC and the 24-hour trading volume is $38.82 billion with a market cap of $2.16T .

Source: CoinMarketCap

How Largest Asset Manager Find Vitual Asset a Future Fortune

Larry Fink has believed in bitcoin when it is not widely acceptable by the institutions. He explained it as a pure digital gold, a fixed value storation. The leading concept toward the BlackRock Bitcoin retaining statement is of course its scarcity and the hedging power against inflation. And his description isn’t balderdash as the company has ~700,000 BTC in their account as per date according to reports, worth billions. 

Structure of BlackRock Bitcoin purchasing analogy

• Indirect Approaches: They accumulate the amount in different ways like buying shares in crypto holding companies, trading futures, and investing through different trusts. 

• Spot Bit ETF: When SEC approved the spot ETFs in 2024, the asset giant kicked off its iShares Btcoin Trust (IBIT), which enabled them to buy and store coins directly to support the ETF shares. 

• Gradual Strategies: Use Algorithmic execution for progressive weekly/monthly  buyings, work with liquidity providers to avoid substantial shortfalls.

• Partnered with specialized and licensed custodians to keep holdings safe. 

Challenge to BlackRock’s Holding Dominance 

Larry Fink's isn’t the only organisation in favour of the collection of this value storing asset in a mass amount, but other key players are also replenishing their accounts. The most recent purchase of 2,205 BTC  by Metaplanet sums up total holding of 15,555 BTC. Microstrategy also boosted their asset’s reservations with the recent 4,980 BTC buying, contributing to the total of 597,325 coins as of now. On the other hand big faces like Binance, Coinbase and even the US government are on the top list of coin holders. BlackRock Bitcoin holding is just one of them.

This shows the growing demand  by different sectors. Everyone wants to preserve them for ongoing and futuristic benefits. It also leads to the surge and scarcity of the coins.