Blackstone's First Crypto Bet: A $1M Bitcoin ETF Investment

Blackstone, the world's largest alternative asset manager, recently disclosed its inaugural crypto investment: a purchase of shares in BlackRock's spot Bitcoin exchange-traded fund (ETF).

A Modest Beginning

While a significant step for the firm, Blackstone's investment, reported in a May 20 SEC filing, amounted to approximately $1.08 million—a small fraction of its $1.2 trillion portfolio. As of March 31, Blackstone held 23,094 shares of BlackRock's iShares Bitcoin Trust ETF (IBIT).

This investment was added to Blackstone's Alternative Multi-Strategy Fund (BTMIX), which manages $2.63 billion in assets.

Diversification Beyond Bitcoin

Blackstone's foray into crypto wasn't limited to Bitcoin ETFs. The filing also reveals purchases of:

• 4,300 shares of Bitcoin Depot Inc. (BTM) for $6,300
• 9,889 shares of the ProShares Bitcoin ETF (BITO) for $181,166

A Shift in Strategy?

This move marks a notable shift for Blackstone, which previously expressed reservations about crypto. In 2019, CEO Steve Schwarzman voiced skepticism about its use as currency. However, this recent investment suggests a growing acceptance of digital assets within the firm.

Market Context

BlackRock's iShares Bitcoin Trust ETF (IBIT) has experienced significant inflows in recent weeks, showing continued institutional interest in Bitcoin. In contrast, the Wisconsin Investment Board recently liquidated its entire IBIT holdings.

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