As of recent reports, BlackRock does not directly own more Bitcoin (BTC) than Binance. However, BlackRock’s involvement in Bitcoin and other digital assets is primarily through indirect investments, strategic partnerships, and potential future offerings, such as the proposed Bitcoin exchange-traded fund (ETF).
Understanding BlackRock’s Involvement with Bitcoin
- Bitcoin ETF: BlackRock filed for a spot Bitcoin ETF in 2023, which, if approved, would mark a significant entry into the crypto market. The approval of such an ETF would allow investors to gain exposure to Bitcoin through a traditional investment vehicle without directly holding the asset, potentially increasing Bitcoin’s demand and liquidity in the market.
- Indirect Ownership Through Holdings: BlackRock has exposure to Bitcoin through its stakes in companies that hold Bitcoin. For instance, BlackRock owns shares in companies like MicroStrategy and Coinbase, both of which hold substantial Bitcoin assets. This indirect ownership allows BlackRock to gain some exposure to Bitcoin’s price movements through its equity investments.
Binance’s Bitcoin Holdings
Binance, as one of the largest cryptocurrency exchanges, holds a substantial amount of Bitcoin to provide liquidity for its users and facilitate trading activities. The exact amount of Bitcoin held by Binance fluctuates based on user deposits and withdrawals. However, Binance’s direct holding of Bitcoin is considerable, as it needs to maintain sufficient reserves to meet user demands and secure customer funds.
Direct vs. Indirect Ownership
- Direct Ownership (Binance): Binance holds Bitcoin directly as a reserve to back user assets, making its Bitcoin holdings transparent to some degree, especially through proof-of-reserves audits.
- Indirect Exposure (BlackRock): BlackRock does not hold Bitcoin directly. Instead, it has indirect exposure through investments in Bitcoin-holding companies and potentially, in the future, through its proposed Bitcoin ETF.
Future Potential
If BlackRock’s Bitcoin ETF is approved, it could theoretically amass significant BTC on behalf of investors, possibly surpassing certain exchange holdings.
