BlackRock's crypto assets surge by $4.8 billion... sold Bitcoin and bought Ethereum

▲ BlackRock, Bitcoin (BTC), Ethereum (ETH)/AI generated image ©

BlackRock's cryptocurrency portfolio swelled by $4.8 billion in July alone, with contrasting investment behavior—reducing Bitcoin (BTC) and increasing Ethereum (ETH)—suggesting a potential shift in institutional funds.

According to crypto media outlet Finbold on July 29 (local time), the value of BlackRock's crypto portfolio, as compiled by Arkham Intelligence, increased from $49.15 billion on the 1st to approximately $53.95 billion on the 28th. This represents an increase of $4.8 billion, or 9.77%, in less than a month.

The asset value of BlackRock's spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), increased by $3.64 billion during the same period, from $44.69 billion to approximately $48.33 billion. However, this was primarily due to the rise in Bitcoin's price rather than new purchases. Bitcoin rose by $5,202, or 8.65%, in July, trading at approximately $65,330, but BlackRock's holdings decreased by 3,420 units, from 743,190 to 739,770.

Conversely, the asset value of the iShares Ethereum Trust (ETHA), a spot Ethereum ETF, grew by $1.16 billion, from $4.46 billion to $5.62 billion. This increase was driven by Ethereum's price surging over 21% in July to $1,952, coupled with additional purchases by BlackRock. During the same period, BlackRock expanded its Ethereum holdings by 105,920 units, from 2.77 million to 2.88 million.

The changes in BlackRock's portfolio suggest that institutional investors may be showing greater interest in Ethereum than Bitcoin as the global cryptocurrency regulatory environment becomes clearer. Former fund manager Axel Kibar explained that the Ethereum/Bitcoin price ratio, which broke out of a month-long downtrend, confirmed a market reversal. If institutional demand continues, Ethereum is expected to benefit more from capital inflows from BlackRock investors.

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