Blackstone has disclosed its first-ever cryptocurrency investment, acquiring just over $1 million in shares of BlackRock’s iShares Bitcoin Trust ETF (IBIT). The move marks a significant, albeit cautious, step into the digital asset space for the firm, which manages approximately $1.2 trillion in assets.SEC Filing Reveals Modest Position in Bitcoin-Linked ETFsAccording to a May 20 filing with the U.S. Securities and Exchange Commission (SEC), Blackstone reported owning 23,094 shares of IBIT valued at approximately $1.08 million as of March 31, 2025. The shares were purchased through the firm’s Alternative Multi-Strategy Fund (BTMIX), which currently manages $2.63 billion in assets.In addition to its IBIT position, Blackstone disclosed:A $6,300 stake in Bitcoin Depot Inc. (BTM), a crypto ATM operator, comprising 4,300 sharesA $181,166 investment in ProShares Bitcoin Strategy ETF (BITO), totaling 9,889 sharesDespite branding itself as a leader in alternative investments, Blackstone has historically avoided direct exposure to cryptocurrencies. In 2019, CEO Steve Schwarzman publicly dismissed crypto as “odd,” favoring centralized currency systems over decentralized ones. At the time, he acknowledged blockchain's potential but questioned its use as a monetary vehicle.Industry-Wide Shifts Highlight Growing Institutional InterestBlackstone’s foray into Bitcoin ETFs coincides with sustained institutional inflows into spot Bitcoin ETFs, particularly BlackRock’s IBIT, which has seen 20 consecutive trading days of inflows since April 9, 2025, per Farside Investors data.IBIT has now amassed over $46.1 billion in net inflows since launching in January 2024, solidifying its position as the leading spot Bitcoin ETF in the U.S. market. By contrast, Fidelity’s Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) trail with $11.8 billion and $2.8 billion in cumulative inflows, respectively.Meanwhile, some institutional investors are reassessing their exposure. The Wisconsin Investment Board, which had initially made headlines as one of the first U.S. state funds to back Bitcoin ETFs, revealed on May 15 that it liquidated its entire position of 6.06 million IBIT shares — then worth $3.7 billion — during Q1 2025.A Conservative Entry Amid Surging FlowsWhile Blackstone’s investment in Bitcoin ETFs is minor relative to its total portfolio, it may signal increased openness among traditional asset managers toward crypto exposure. The firm reported $37 billion in investable capital as of March 31, 2025.Given the strong institutional flows into Bitcoin ETFs, and growing acceptance of digital assets as an emerging asset class, Blackstone’s move could represent the beginning of broader institutional participation in the crypto sector, according to Cointelegraph.
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