After years of steering clear of crypto, one of Wall Street’s most powerful asset managers has quietly made its debut in the digital asset space. Blackstone, the global giant known for its prowess in alternative investments, has officially made its first foray into cryptocurrency — albeit cautiously — by purchasing just over $1 million worth of BlackRock’s spot Bitcoin ETF.
In a regulatory filing submitted to the U.S. Securities and Exchange Commission (SEC) on May 20, Blackstone disclosed that it held 23,094 shares of BlackRock’s iShares Bitcoin Trust (IBIT) as of March 31. The position was allocated to the firm’s Alternative Multi-Strategy Fund (BTMIX), which currently oversees $2.63 billion in assets, according to Google Finance.
While $1 million might seem like a substantial sum, in the context of Blackstone’s massive $1.2 trillion portfolio, it barely registers. Nonetheless, the move is noteworthy because it marks the first time Blackstone has included any form of crypto exposure in its vast investment empire — a sign that even the most traditional institutions are beginning to take digital assets seriously.
In addition to IBIT, Blackstone also acquired a few smaller crypto-related positions. The firm purchased 4,300 shares of Bitcoin Depot Inc. (BTM), a company known for operating Bitcoin ATMs, for roughly $6,300. It also picked up 9,889 shares of the ProShares Bitcoin Strategy ETF (BITO), a futures-based fund, for $181,166.
This slight pivot into crypto is particularly striking considering the company’s historical stance. Back in 2019, Blackstone CEO Steve Schwarzman was openly skeptical of cryptocurrency, praising blockchain technology but dismissing digital currencies themselves. “I was raised in a world where someone needs to control currencies,” he remarked at the time, underscoring his discomfort with decentralized financial systems.
Schwarzman also admitted to having little personal interest in understanding crypto. That tone seems to have softened—or at least evolved—with this latest move, signaling a possible strategic shift, or at the very least, a willingness to explore new asset classes.
Blackstone’s decision comes at a time when institutional adoption of Bitcoin continues to ramp up, especially after the SEC approved multiple spot Bitcoin ETFs earlier this year. These new financial products have made it easier for asset managers to offer Bitcoin exposure without directly holding the asset.
Interestingly, not all institutional players are moving in the same direction. The State of Wisconsin Investment Board, one of the first major pension funds to invest in Bitcoin ETFs, revealed on May 15 that it had sold off its entire $3.7 billion position in IBIT during Q1 — a stark contrast to Blackstone’s fresh entry.
Meanwhile, BlackRock’s IBIT continues to thrive. According to Farside Investors, the fund hasn’t experienced a single outflow in over six weeks, with a steady 20-day streak of inflows pushing its total net inflows above $46.1 billion since its January 2024 launch. Fidelity’s FBTC and ARK 21Shares’ ARKB trail behind, with $11.8 billion and $2.8 billion in net inflows, respectively.
For Blackstone, this small but symbolic move could be the beginning of a larger crypto play down the road. While the dollar amount is modest, the statement it makes is loud and clear: the traditional finance giants are starting to pay attention—and they’re no longer content to sit on the sidelines.
