Blackstone invests $1M in Bitcoin ETF as its first move in crypto
Blackstone, known as the “world’s largest alternative asset manager,” has announced its inaugural investment in the cryptocurrency sector by acquiring shares in BlackRock’s Spot Bitcoin Exchange Sales Fund.
As reported on May 20th to the Securities and Exchange Commission, Blackstone’s investment totaled approximately $1.08 million. This figure represents only a fraction of the asset manager’s massive $1.2 trillion portfolio.
As of March 31st, Blackstone holds 23,094 shares in BlackRock’s iShares Bitcoin Trust ETF (IBIT).
The IBIT shares are part of Blackstone’s Alternative Multi-Strategic Fund (BTMIX), which is linked to Google Finance and has assets worth $2.63 billion.
In its recent filing, Blackstone disclosed it purchased 4,300 shares from Crypto ATM operator Bitcoin Depot Inc. (BTM) for about $6,300, alongside spending $181,166 on 9,889 shares of the ProShares Bitcoin ETF (BITO).
Interestingly, despite branding itself as an “alternative asset manager,” Blackstone appears somewhat detached from the crypto space. In September 2019, CEO Steve Schwarzman expressed a degree of skepticism about cryptocurrencies, stating that while he finds the blockchain concept intriguing, its application to currency felt “pretty strange.” He mentioned that he has grown up in a world where currency requires oversight.
He also acknowledged the complexities of the technology, noting his limited interest in cryptography.
Blackstone’s investment portfolio spans various sectors, including private equity, real estate, credit, infrastructure, hedge funds, and insurance solutions.
As of March 31, the firm reported having $37 billion in investable capital.
Meanwhile, the Wisconsin Investment Commission, one of the first state investment funds to integrate Bitcoin for U.S. retirees, stated on May 15 that it had processed all $3.7 billion worth of IBIT shares in the first quarter.
BlackRock’s Bitcoin Fund has experienced consistent inflows, showing no outflows for six weeks since April 9th, according to recent data.
Since its January 2024 launch, the fund has recorded inflows exceeding $46.1 billion over a 20-day winning streak.
The Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF trail behind IBIT with the highest net inflows, reported at $11.8 billion and $2.8 billion, respectively.
