$10.5 Trillion Asset Manager Blackrock's Spot Bitcoin ETF Now Holds 270K BTC

[sirty143]

$10.5 Trillion Asset Manager Blackrock's Spot Bitcoin ETF Now Holds 270K BTC

Blackrock, the world’s largest asset manager, shattered its record for assets under management (AUM), reaching a staggering $10.5 trillion. This financial behemoth also continues to dominate the U.S. spot bitcoin ETF... See more for yourself here.

Your opinion is greatly appreciated.

[SamReomo]

Blackrock has just began their purchasing of Bitcoin and slowly they'll continue to accumulate huge amounts of Bitcoin to make their ETF the most powerful and dominant one. I know that they won't be able to reach Grayscale ETF levels of accumulation but they do have money power which they can invest to accumulate more Bitcoin.

[Lucius]

Blackrock has just began their purchasing of Bitcoin and slowly they'll continue to accumulate huge amounts of Bitcoin to make their ETF the most powerful and dominant one. I know that they won't be able to reach Grayscale ETF levels of accumulation but they do have money power which they can invest to accumulate more Bitcoin.

If they just started (and they've been doing it for 3+ months), and they currently have 270 000+ BTC, why do you think they won't reach Grayscale at some point? Before the approval of the spot ETF, they had a little more than 600 000 BTC, today they only have a little more than 300 000 BTC, so it is only a matter of days when they will overtake Grayscale and come to the first position, and it is also a matter of time when they will have more BTC than Grayscale ever had.

[hugeblack]

I am confused about what the situation will be like after the crypto winter arrives. Will investing in Bitcoin be in a state of long-term growth as a long-term investment or is it hot money?

[Stompix]

I know that they won't be able to reach Grayscale ETF levels of accumulation but they do have money power which they can invest to accumulate more Bitcoin.

Blackrock has 269 313 Grayscale has 315 931.
Before the launch of other ETF Grayscale had a bit over 600 000 Btc, with most of the offlow being directed to Blackrock it's probably safe to assume that at least 90% of it will move there by the end of Q3 at least, and with this even assuming minimalistic growth BR would for sure top Grayscale previous deposits.

So, what makes you think they won't?
Plus, this is not about what money BR has, those are funds they manage for their clients, the coins are the result of clients shifting investments.

I am confused about what the situation will be like after the crypto winter arrives.

You're already thinking of winter? 

[Lucius]

I am confused about what the situation will be like after the crypto winter arrives. Will investing in Bitcoin be in a state of long-term growth as a long-term investment or is it hot money?

I think that investors will behave as before, regardless of how they invested in BTC. This would mean that at some point there will be a large outflow of BTC from ETFs, because all these investors invest only for profit and when it becomes clear that the bull run is about to end or when a correction begins, it is logical that this will be a sign for them to exit.

Even in the last few days, there has been a stagnation in inflows, while on the other hand, we have an increase in BTC outflows from funds - now the only question is whether the reason is that investors are afraid of a possible war in the Middle East, or the same thing would have happened regardless to the current development of the situation.

I believe that Bitcoin would gain some stability only if by some miracle central banks started investing in it, but as long as the average investor sees it as an opportunity for relatively easy and quick earnings, we should not hope that the volatility will disappear.

[Z-tight]

I believe that Bitcoin would gain some stability only if by some miracle central banks started investing in it, but as long as the average investor sees it as an opportunity for relatively easy and quick earnings, we should not hope that the volatility will disappear.

I don't think that miracle is going to happen, however, why do you think the involvement of central banks would bring more stability into BTC? Don't you think they would also sell the coins they have if there is a dump in BTC price or if they have made good returns, just the same way institutional investors will do.

[Crwth]

The Bitcoin ETF has definitely brought a lot of unexposed money to the cryptocurrency space and had a major breakthrough like what you posted OP.

As long as they continue, they will be followed by other industries, hopefully.

[yhiaali3]

It is clear from the beginning that BlackRock is seeking to control the market. Their closest competitor is Grayscale, and they could overtake them if they continue with the same aggregation approach.

These giant companies are always accustomed to being the biggest whale in the market, so they continue to acquire more Bitcoin despite the significant price increase that the market has witnessed. It is certain that they will take advantage of the correction that occurred since yesterday to obtain Bitcoin at a cheaper price before halving.

I don't know if that's healthy for the market, but I personally don't like the accumulation of all these large amounts of Bitcoin in the hands of a few companies.

[Lucius]

I believe that Bitcoin would gain some stability only if by some miracle central banks started investing in it, but as long as the average investor sees it as an opportunity for relatively easy and quick earnings, we should not hope that the volatility will disappear.

I don't think that miracle is going to happen, however, why do you think the involvement of central banks would bring more stability into BTC? Don't you think they would also sell the coins they have if there is a dump in BTC price or if they have made good returns, just the same way institutional investors will do.

Miracles happen sometimes, and when you look at Bitcoin itself, it is a big miracle that few people took seriously for the first 7-8 years, and big institutions started to take a serious interest only from 2020 onwards. The longer Bitcoin is on the global market, the more attention it will attract, and perhaps in the future some central banks will decide to invest in it.

Central banks, in my humble opinion, would not act like ordinary investors looking for mostly short-term profits, but would perhaps treat Bitcoin as digital gold - and we all know that central banks (some) buy large amounts of gold and keep it in their vaults for a very long time.

[Stompix]

I believe that Bitcoin would gain some stability only if by some miracle central banks started investing in it, but as long as the average investor sees it as an opportunity for relatively easy and quick earnings, we should not hope that the volatility will disappear.

Why not a more down-to-earth approach for a new generation of long-term investors who don't care about quick profits and only about protecting their money/investment value over the long term?
To me is far more plausible than a CB somehow making BTC a reserve currency and even acting to protect its value, I doubt  CB won't act the same as pump-and-dump speculators when it's the time to protect their own national currency.

It is clear from the beginning that BlackRock is seeking to control the market. Their closest competitor is Grayscale, and they could overtake them if they continue with the same aggregation approach.

Well, Grayscale could stop charging 10 times more than Blackrock for their management fee for a start.

[Don Pedro Dinero]

Why not a more down-to-earth approach for a new generation of long-term investors who don't care about quick profits and only about protecting their money/investment value over the long term?
To me is far more plausible than a CB somehow making BTC a reserve currency and even acting to protect its value, I doubt  CB won't act the same as pump-and-dump speculators when it's the time to protect their own national currency.

And why not both? In the same way that there are many people who invest only in the stock market for the long term via index funds, I believe that more and more people will invest in bitcoin for the long term. But as for central banks, while there has been no convertibility of fiat currency to gold for many decades, the major central banks have reserves in gold and the Asian central banks are buying, although the Western central banks are simply holding the reserves they have. I think it is plausible that, in the future, if a CB decides to hold a small percentage of bitcoin for its reserves, just as it holds gold, other CBs will follow suit. Although it is clear to me that this will not happen in the near future.

[Lucius]

I believe that Bitcoin would gain some stability only if by some miracle central banks started investing in it, but as long as the average investor sees it as an opportunity for relatively easy and quick earnings, we should not hope that the volatility will disappear.

Why not a more down-to-earth approach for a new generation of long-term investors who don't care about quick profits and only about protecting their money/investment value over the long term?
To me is far more plausible than a CB somehow making BTC a reserve currency and even acting to protect its value, I doubt  CB won't act the same as pump-and-dump speculators when it's the time to protect their own national currency.

I may be wrong, but these new generations that are coming do not seem to me to be people who are ready for such things, so although it may depend from country to country, social status and education - from my personal experience I can say that young people today (most) do not want to invest long-term in something like Bitcoin.

Maybe I'm wrong about central banks, but maybe we're wrong at all when discussing BTC price stability, because volatility is something that attracts investors, and if it wasn't there we can assume that Bitcoin would be less interesting.

[Stompix]

And why not both?

Because I'm not optimistic about future things and when it comes to CB, those are entities that are in charge of their own currency, or let's say it otherwise in charge of manipulating the price of said currency to fit the country's needs, that's where my enthusiasm stops dead.

I may be wrong, but these new generations that are coming do not seem to me to be people who are ready for such things, so although it may depend from country to country, social status and education - from my personal experience I can say that young people today (most) do not want to invest long-term in something like Bitcoin.

Oh no, god no, I don't put my faith in the new generation as in the one maturing now, I'm thinking more of the 35-50 age gap that was not exposed previously to crypto and that was even prior used to DCA on other investments, there are plenty of these guys in my enlarged circle of friends that
were investing prior only with xbt or stuff like that, so I assume they could slowly move some funds toward cryptos too.

[joniboini]

from my personal experience I can say that young people today (most) do not want to invest long-term in something like Bitcoin.

This is pretty interesting. My experience is quite the opposite, with more people around my age expressing interest in Bitcoin for mid-term or long-term investment. At least that's what happens in my circle. I can't say for certain they don't aim for short-term benefits whenever the bull market happens, but they are more open and eager to buy Bitcoin compared to other investment products. Probably because it is easier to access and the risk/reward is better compared to traditional index funds.