Blackstone, the global titan in alternative asset management, has just dipped its toes into the tumultuous waters of cryptocurrency. In a surprising move, the firm disclosed on May 20, through a filing with the US Securities and Exchange Commission, its acquisition of shares worth approximately $1.08 million in BlackRock’s iShares Bitcoin Trust ETF (IBIT). This marks Blackstone’s inaugural foray into the crypto realm, a sphere it has largely sidestepped until now.
A Measured Step into Crypto
Blackstone’s investment in the IBIT is modest—a mere drop in the ocean of its colossal $1.2 trillion portfolio. As of March 31, the firm held 23,094 shares of the ETF, which were added to its Alternative Multi-Strategy Fund (BTMIX), a fund managing assets worth $2.63 billion. Yet, this is no whimsy. It’s a calculated decision that signals a cautious yet intriguing shift in strategy for a company renowned for its diverse investment interests, from private equity to real estate.
Furthering its tentative exploration of the digital asset landscape, Blackstone’s filing also revealed the purchase of 4,300 shares in Bitcoin Depot Inc., a crypto ATM operator, for a modest $6,300. Additionally, it acquired 9,889 shares of the ProShares Bitcoin ETF (BITO) at a cost of $181,166. Despite these investments being relatively small, they hint at a potential pivot—or at least a curiosity—toward digital assets.
A Historical Skeptic Turns a Corner
Historically, Blackstone has maintained a skeptical distance from cryptocurrency. Back in September 2019, Blackstone CEO Steve Schwarzman expressed a lukewarm interest in blockchain technology, while dismissing its application as a currency as “odd.” Schwarzman, who was molded by an era where financial systems were tightly regulated, confessed to struggling with the technological complexities of cryptocurrencies.
However, times—and perhaps perspectives—appear to be evolving. Blackstone’s recent investments suggest a recognition of the growing importance of digital assets in the modern financial ecosystem. It’s a move that could catalyze further interest and investment from other traditionally hesitant institutional players. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
The Bigger Picture: BlackRock’s Rising Tide
The timing of Blackstone’s entry into the crypto market coincides with a period of significant activity for BlackRock’s Bitcoin fund. Since its launch in January 2024, the IBIT has been on a hot streak, with a continuous six-week inflow of funds, totaling over $46.1 billion. Notably, it has outpaced competitors like the Fidelity Wise Origin Bitcoin Fund and the ARK 21Shares Bitcoin ETF, which have net inflows of $11.8 billion and $2.8 billion, respectively. For a deeper dive into the factors driving Bitcoin ETF success, see our coverage of Grayscale’s Bitcoin Trust.
Meanwhile, other players like the state of Wisconsin Investment Board have taken a different path. On May 15, the Board announced it had liquidated all its IBIT shares, valued at $3.7 billion, during the first quarter. This divergence in strategy across institutional investors underscores the ongoing debate about crypto’s role in long-term investment portfolios.
Looking Forward: A New Dawn or a Fleeting Fad?
Blackstone’s entry into the crypto space, albeit tentative, raises questions about the future trajectory of institutional investment in digital assets. Will this move catalyze a broader embrace of Bitcoin and its ilk among cautious investors, or will it remain an isolated experiment? With Blackstone wielding $37 billion in investable capital, the implications of its future decisions could be substantial.
The world of crypto is nothing if not volatile, and as Blackstone steps into this new arena, the industry will be watching closely. Will this be the beginning of a larger trend, or merely a footnote in the firm’s vast investment history? Only time will tell, but for now, Blackstone’s cautious step forward adds another layer to the ever-evolving narrative of cryptocurrency’s place in mainstream finance.
Source
This article is based on: Blackstone buys $1M worth of Bitcoin ETF in first crypto bet
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
