Blackstone Makes First Crypto Move With Investment in BlackRock’s Bitcoin ETF

Key Takeaways:

• Blackstone makes first direct crypto investment.
• The asset manager has added Bitcoin ETFs and crypto ATM shares.
• BlackRock’s IBIT leads U.S. Bitcoin ETFs in inflows.

Blackstone, the world’s largest alternative asset manager, has made its first move into crypto markets, purchasing shares in BlackRock’s iShares Bitcoin Trust (IBIT), a spot Bitcoin exchange-traded fund.

According to a May 20 filing with the U.S. Securities and Exchange Commission, Blackstone acquired 23,094 IBIT shares as of March 31, valued at approximately $1.08 million.

The investment was added to the firm’s $2.63 billion Alternative Multi-Strategy Fund (BTMIX), marking the asset manager’s initial exposure to Bitcoin via regulated financial products.

The filing also reveals that Blackstone purchased 9,889 shares of the ProShares Bitcoin ETF (BITO), totaling $181,166, and a smaller position in Bitcoin Depot Inc. (BTM), a crypto ATM operator, with 4,300 shares worth just $6,300.

Though modest in size—especially relative to Blackstone’s $1.2 trillion in assets under management—the move represents a notable shift for a firm that has historically kept crypto at arm’s length.

In 2019, Blackstone CEO Steve Schwarzman expressed skepticism about crypto, stating, “I was raised in a world where someone needs to control currencies,” and admitted difficulty understanding the technology behind it.

Blackstone’s entry into Bitcoin ETFs comes as demand for institutional access to digital assets grows.

$1 TRILLION BLACKSTONE JUST REVEALED BUYING #BITCOIN ETF FOR THE FIRST TIME IN HISTORY

THIS IS WILD!!! pic.twitter.com/PvlIddtndp

IBIT, launched by BlackRock in January 2024, has quickly become the leader among U.S. spot Bitcoin ETFs.

As of mid-May, the fund has recorded over $46.1 billion in net inflows and has not seen a single outflow since April 9, according to Farside Investors.

In contrast, the Wisconsin Investment Board, one of the first U.S. public pension funds to gain Bitcoin exposure, reported on May 15 that it had fully liquidated its 6 million IBIT shares during Q1.

IBIT continues to outpace competitors like Fidelity’s FBTC and ARK’s Bitcoin ETF, which have seen $11.8 billion and $2.8 billion in net inflows, respectively.

Shares of Indonesian fintech firm DigiAsia Corp surged by over 91% on May 19, after the Nasdaq-listed company announced plans to raise $100 million to initiate Bitcoin purchases as part of a new treasury strategy.

The Jakarta-based firm revealed that its board has approved the creation of a Bitcoin treasury reserve.

DigiAsia says it intends to allocate up to 50% of its net profits toward acquiring Bitcoin, signaling a shift in how it plans to manage its capital amid growing corporate interest in digital assets.

In addition to deploying profits into Bitcoin, DigiAsia is actively exploring a capital raise of up to $100 million to kickstart its holdings.

Notably, public companies continue to increase their exposure to Bitcoin, with Michael Saylor’s firm, Strategy, leading the charge.

The Virginia-based company recently announced it would double its capital-raising efforts to $84 billion in order to acquire more Bitcoin.

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