BlackRock Now Owns 2% of the Total Bitcoin (BTC) Supply

This happened eight months after the launch of its spot Bitcoin exchange-traded fund (ETF).

BlackRock, the world's largest asset management company, now owns 2% of the total Bitcoin (BTC) supply, according to Bitcoin Magazine. This comes eight months after the launch of its spot Bitcoin exchange-traded fund (ETF).

BlackRock had $10.65 trillion in assets under management (AUM) in the second quarter, up from $9.43 trillion in the same period last year. The latest figure marks an all-time high for the firm.

The asset manager had acquired anywhere between 5% and 20% of the voting shares of giant corporations worldwide, giving it a substantial say in the direction of the companies in its corporate sphere of influence.

The source didn't say how much Bitcoin BlackRock actually owns. However, based on the latest tally of Farside Investors at the market close of September 11, the asset manager already had $20.9082 billion in shares of spot Bitcoin ETFs.

At 5:00 AM UTC on Thursday, the market cap of Bitcoin's 19.75 million circulating supply had recovered to $1.15 trillion as it returned to the $58K range. BTC has a hard cap of 21 million, which would put its fully diluted market cap at around $1.22 trillion. This was as nearly $36.69 billion in the digital asset moved between addresses following the release of the latest US inflation data.

At this rate, BlackRock's spot Bitcoin ETF shares account for 1.81% of the total value of BTC's circulating supply and 1.71% of the crypto asset's diluted supply. There could be a margin of error in this tally due to rounding or other factors. It's also possible that Bitcoin Magazine had access to information not available to the public.

BlackRock's accumulation in a mere eight months is astounding. It has sparked concerns that its aggressive buying spree through its spot Bitcoin ETF would eventually undermine Bitcoin's decentralized infrastructure. BitMEX co-founder Arthur Hayes sounded the same sentiment earlier when he said that if managers like BlackRock are too successful, they will ultimately destroy Bitcoin.

Isabella Santos, host of the online magazine, explained why BlackRock's Bitcoin ownership alone does not guarantee its control over the blockchain's ecosystem. She said a board of directors does not govern Bitcoin, which is instead protected by layer upon layer of safeguards.

Apart from BTC holders, miners and node runners also have a say in the direction of Bitcoin, making it “nearly unco-optable.”

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