Nikolas Sargeant
Blackstone, the world's largest alternative asset manager, has officially entered the cryptocurrency market with its first digital asset investment. According to a May 20 filing with the U.S. Securities and Exchange Commission, the firm purchased 23,094 shares of BlackRock's iShares Bitcoin Trust (IBIT), valued at approximately $1.08 million as of March 31.
The investment was incorporated into Blackstone's $2.63 billion Alternative Multi-Strategy Fund (BTMIX), representing the company's initial exposure to Bitcoin through regulated financial products. While modest compared to Blackstone's massive $1.2 trillion in assets under management, this move signals a significant shift for an institution that has historically maintained distance from cryptocurrency markets.
Diversified Crypto Exposure Through Multiple Vehicles
The SEC filing revealed that Blackstone's crypto strategy extends beyond the BlackRock product. The firm also acquired 9,889 shares of the ProShares Bitcoin ETF (BITO), valued at $181,166, alongside a smaller position in Bitcoin Depot Inc. (BTM), a cryptocurrency ATM operator, with 4,300 shares worth approximately $6,300.
This cautious entry into digital assets represents an evolution in Blackstone's approach to cryptocurrency. In 2019, CEO Steve Schwarzman expressed skepticism about digital currencies, stating, "I was raised in a world where someone needs to control currencies," and acknowledged challenges in understanding the underlying technology.
BlackRock's IBIT has rapidly established itself as the market leader among U.S. spot Bitcoin ETFs since its January 2024 launch. The fund has attracted over $46.1 billion in net inflows and hasn't experienced a single outflow since April 9, according to data from Farside Investors. IBIT continues to outperform competitors like Fidelity's FBTC and ARK's Bitcoin ETF, which have recorded $11.8 billion and $2.8 billion in net inflows, respectively.
Institutional Crypto Adoption Accelerates
Blackstone's entry coincides with broader institutional movements in the cryptocurrency space. While the Wisconsin Investment Board—one of the first U.S. public pension funds to gain Bitcoin exposure—fully liquidated its 6 million IBIT shares during Q1, other institutions are increasing their digital asset positions.
Indonesian fintech DigiAsia Corp saw its shares surge over 91% on May 19 after announcing plans to raise $100 million for Bitcoin purchases as part of a new treasury strategy. The Jakarta-based firm intends to allocate up to 50% of its net profits toward acquiring Bitcoin.
Similarly, Michael Saylor's Strategy (formerly MicroStrategy) recently doubled its capital-raising target to $84 billion to accelerate Bitcoin acquisition, highlighting the growing trend of corporate treasury allocation to digital assets as institutional adoption continues to gain momentum.
