BlackRock, one of the world’s largest asset managers, with over $10 Trillion under its management, has recently become the third-largest holder of Bitcoin globally, with nearly 350,000 BTC. They overtook Grayscale to claim the third spot and are now only behind Satoshi and Binance exchange.
The significant increase in Bitcoin holding of BlackRock can directly be attributed to the success of BlackRock’s iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF, which has gained popularity among institutional investors. There are speculations that BlackRock can eventually surpass Binance to take the second spot as Bitcoin ETF continues to attract more institutional investment.
Notably, Larry Fink, the CEO of BlackRock, had been a long-time critic of Bitcoin, calling it speculative. However, with the success of the ETF, his stance has shifted following the success of the ETF.
Observations of Top Bitcoin Wallet
| Rank | Holder | Bitcoin Holdings |
| 1 | Satoshi Nakamoto | 1.1 million BTC |
| 2 | Binance Exchange | 550,133 BTC |
| 3 | BlackRock (IBIT) | 347,767 BTC |
| 4 | Grayscale (Total *1) | 263,801 BTC |
| 5 | Microstrategy | 226,500 BTC |
| 6 | Bitfinex Exchange | 221,315 BTC |
| 7 | US Government | 213,246 BTC |
| 8 | Chinese Government | 190,000 BTC |
| 9 | Fidelity (FBTC) | 176,626 BTC |
| 10 | Block One | 164,000 BTC |
| 11 | Robinhood | 139,144 BTC |
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Source: https://sosovalue.xyz/
- Centralization in the biggest wallets: Originally designed to be a decentralized ecosystem, BTC has become increasingly centralized, as evidenced by centralized exchanges and Governments occupying the top of the list.
- Government Involvement: The US and Chinese governments are included in the list due to asset seizures currently. There are talks about converting the assets to strategic reserves, which would likely impact future financial regulatory policies.
- Emergence of ETFs: The combined holdings of ETFs, particularly BlackRock’s involvement, suggest that the incorporation of BTC financial products with traditional ecosystems seems to be popular.
- Dominance of Exchanges: Given their central role in the crypto ecosystem, it’s no surprise that crypto exchanges like Binance and Bitfinex are on the list. They facilitate trading and act as custodians of crypto assets for both institutional and retail investors.
BlackRock’s quick rise to about 350,000 BTC holdings demonstrates how new the crypto ecosystem is. It can easily be disrupted with the entry of new players and financial instruments. However, the rise of centralized players is a growing concern in the Bitcoin ecosystem, and we have yet to see any major decentralized system disrupt these centralized entities.
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