Understanding BlackRock’s Influence on Bitcoin’s Market Turbulence
On February 28, BlackRock became a hot topic on social media platform X, as Bitcoin (BTC) experienced a significant price drop, falling below the $80,000 threshold for the first time since early 2025. Amidst the market’s volatility, rumors began circulating that BlackRock was offloading its Bitcoin holdings, contributing to the currency’s decline.
The Viral Speculation: BlackRock’s Alleged Bitcoin Dump
One viral claim that caught the attention of many came from Crypto Beast, a prominent figure with over 658,000 followers. The account suggested that BlackRock had sold approximately $500 million worth of Bitcoin on February 27. This assertion ignited intense debates, with individuals questioning whether the world’s leading asset manager was playing a role in Bitcoin’s price drop.
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Examining the Reality Behind the Allegations
In contrast to the speculation, a deeper analysis reveals a different scenario. Data from Arkham Intelligence indicates that BlackRock’s iShares Bitcoin Trust (IBIT) still holds around 577,919 BTC. While there was a net outflow of 2,274 BTC on February 27 and a seven-day outflow reaching 10,595 BTC, these figures do not confirm that BlackRock is actively selling Bitcoin.
The Mechanics of ETF Redemptions
The data suggests that the withdrawals are driven by investors redeeming their shares in the ETF, necessitating the fund to sell Bitcoin to accommodate these redemptions. This process is crucial to understand—BlackRock, as the fund issuer, is not proactively selling Bitcoin but is instead adjusting its holdings in alignment with investor activities.
BlackRock’s Strategic Moves in the Bitcoin Ecosystem
Contrary to the rumors, BlackRock seems to be enhancing its involvement in Bitcoin-related investments rather than reducing them. A recent Schedule 13G filing disclosed that BlackRock has increased its ownership in MicroStrategy (MSTR) to 5%, equating to approximately 11.2 million shares, marking a rise from its previous 4.09% stake as of September 30, 2024.
Clarifying Misconceptions: BlackRock’s Position on Bitcoin
The available data clearly contradicts the idea that BlackRock is deliberately selling off Bitcoin. Instead, the outflows from IBIT and other funds stem from retail and institutional investors selling their ETF shares, not from BlackRock liquidating its Bitcoin holdings. Additionally, there is no evidence supporting claims that BlackRock is withdrawing from its Bitcoin position.
Expanding Bitcoin Exposure in BlackRock’s Portfolio
In fact, on February 28, it was announced that BlackRock would integrate its ETF into its $150 billion model portfolio. The firm has begun incorporating Bitcoin into its extensive $150 billion model-portfolio universe, allocating 1-2% of its Target Allocation ETF portfolios to the $48 billion iShares Bitcoin Trust ETF (IBIT).
Overall, this scenario underscores the critical need to differentiate between investor-driven ETF redemptions and direct asset sales by BlackRock during market downturns. It’s essential to remain informed and avoid jumping to conclusions based on unverified claims.
