The investment giant tests the crypto waters. Blackstone, globally recognized as the largest alternative asset manager in the world, has taken its first cautious step into the universe of cryptocurrencies.
The firm, which manages over $1 trillion in assets, acquired only $1.08 million in BlackRock's spot Bitcoin ETF, known as IBIT.
A tiny investment for a global financial titan
This modest amount represents an insignificant fraction for Blackstone. The IBIT, valued at over $60 billion, has established itself as the most popular and successful Bitcoin ETF in the market.
The presentation to the SEC last Tuesday seems to be the first official occasion where Blackstone reports investments in the crypto world. The documentation reflects managed investments up to the end of the fiscal quarter that closed on March 30.
Stephen Schwarzman, CEO of Blackstone, has never hidden his reservations about Bitcoin. In 2019, Schwarzman confessed his disinterest in this technology. He frankly admitted his difficulties in understanding it deeply.
Persistent concerns about illegal activities
Blackstone's CEO also expressed serious concerns about the possible use of cryptocurrencies to facilitate criminal activities. Schwarzman stated that anonymous transactions could potentially facilitate operations with money from illegal activities such as drug trafficking and other crimes.
Contrast with Blackstone's caution regarding Bitcoin's price: it has recently been close, as we see in the 5-day chart, to the previous ATH of January this year... which reached $109K.
As Bitcoin once again surpasses the psychological barrier of $100,000 and reaches an impressive market capitalization exceeding $2 trillion, different institutional investors show contradictory signals in their strategies.
The Wisconsin State Investment Board recently sold its holdings valued at $321 million in BlackRock's ETF.
The undeniable and unprecedented success of Bitcoin ETFs
Despite the apparent cooling of certain institutional investors, Bitcoin ETFs managed by BlackRock enjoy unprecedented commercial success in the financial market.
We see the good performance of BlackRock's IBIT ETF since its inception in January 2024.
The fund experienced an extraordinary streak of inflows for 20 consecutive days, capturing an additional $5 billion during this period.
A historically successful financial product
Financial experts agree that BlackRock's spot Bitcoin ETFs have quickly become one of the most successful exchange-traded funds in the history of financial markets, showing institutional appetite for regulated exposure to Bitcoin.
The contrast between corporate caution and market boom
Blackstone's ultra-conservative behavior contrasts sharply with the current bullish moment of Bitcoin and the widespread enthusiasm for specialized ETFs.
This disparity reveals the different speeds at which traditional institutional players adopt innovations in the digital asset sector.
