World’s Largest Alternative Asset Manager Makes First Foray Into Digital Assets
Blackstone, the world’s largest alternative asset manager with over $1.2 trillion in assets under management, has made its first-ever crypto-related investment, according to a May 20 filing with the U.S. Securities and Exchange Commission.
The firm disclosed that it purchased 23,094 shares of BlackRock’s iShares Bitcoin Trust ETF (IBIT), valued at approximately $1.08 million as of March 31. The allocation was made through Blackstone’s Alternative Multi-Strategy Fund (BTMIX), which manages $2.63 billion in total assets.
Modest Entry, But a Notable Shift in Stance
While the $1 million investment is a tiny fraction of Blackstone’s portfolio, it marks a symbolic step for a firm that has largely kept its distance from crypto.
In addition to the IBIT shares, Blackstone also reported:
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4,300 shares of Bitcoin Depot Inc. (BTM), a crypto ATM operator, worth $6,300.
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9,889 shares of the ProShares Bitcoin Strategy ETF (BITO), valued at $181,166.
The total crypto exposure across its positions remains limited — a conservative toe-dip into a market long viewed with skepticism by traditional finance giants.
In 2019, Blackstone CEO Steve Schwarzman said he liked blockchain technology but found the idea of crypto as money to be “odd,” emphasizing his belief that currencies should be controlled by governments.
Contrasts and Timing: Wisconsin Exits as Blackstone Enters
The move comes just days after the Wisconsin Investment Board, one of the first U.S. state retirement funds to buy spot Bitcoin ETFs, liquidated its $3.7 billion IBIT position.
While Wisconsin exits, Blackstone enters, signaling growing interest from institutional players — albeit cautiously.
Blackstone’s website lists $37 billion in investable capital as of Q1 2024, meaning its current crypto allocation is well below 0.01% of that total.
BlackRock’s IBIT Maintains Momentum
BlackRock’s IBIT continues to be the most dominant spot Bitcoin ETF on the market, with no outflows recorded since April 9, according to Farside Investors.
It has now seen 20 consecutive trading days of inflows, pushing its total net inflows above $46.1 billion since launching in January 2024.
By comparison:
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Fidelity’s FBTC has amassed $11.8 billion in inflows.
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ARK 21Shares’ ARK ETF has brought in $2.8 billion.
Final Thoughts: A Quiet But Significant Signal
While Blackstone’s investment is modest, it marks a notable turning point in how traditional financial institutions view Bitcoin.
The move into BlackRock’s ETF suggests growing institutional comfort with regulated crypto products, particularly those structured within the familiar framework of exchange-traded funds.
As Blackstone joins a wave of firms making their first crypto allocations, the barriers to institutional entry continue to fall — and the significance of Bitcoin as a mainstream financial asset becomes harder to ignore.
