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Leak reveals BlackRock is quietly doubling its exposure to Bitcoin as the price suddenly surges towards $100,000

Bitcoin and cryptocurrency prices have skyrocketed this week as traders cheer Donald Trump's decisive US election victory and predict a Bitcoin price of $100,000.

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Bitcoin price has risen throughout 2024 as Trump embraces Bitcoin and expects Federal Reserve interest rate cuts, stimulus measures in China and Wall Street rollout.

Now, as markets brace for a “game changer” from Trump, a leak has revealed that the world's largest asset manager BlackRock is in talks to buy a stake in the “king” of Bitcoin exchange-traded fund (ETF) holders.

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BlackRock, the world's largest asset manager, which is in the midst of a multi-stage plan to digitize Wall Street with crypto and blockchain, is negotiating to buy a small stake in the $70 billion alternative asset manager Millennium, a hedge fund known as “King” of Bitcoin ETF holders, according to a Financial Times Report citing anonymous sources.

Earlier this year, it was revealed that Millennium holds nearly $2 billion in spot Bitcoin ETFs as of the first quarter of 2024, including nearly $2 billion in five spot Bitcoin ETFs, led by a holding of nearly $800 million in BlackRock's IBIT Bitcoin fund.

Last month, BlackRock CEO Larry Fink outlined his plan for Bitcoin, Ethereum and cryptocurrencies during BlackRock's third-quarter earnings call, predicting that Bitcoin, Ethereum and cryptocurrencies would be “overlaid” by artificial intelligence.

“We believe Bitcoin is an asset class in itself, it's an alternative to other commodities like gold,” said Fink, who led Wall Street's push last year to bring a full-fledged spot Bitcoin ETF to U.S. markets bring.

Wall Street's launch of a fleet of spot Bitcoin ETFs this year was the first step in what Fink called a digital “revolution” as he unveiled his crypto ambitions for BlackRock – which include being blockchain-based Alternative to the US dollar.

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ForbesA “game-changer” of Trump’s strategic Bitcoin reserve in the US is suddenly racing towards the Bitcoin priceFrom Billy Bambrough

On Thursday, BlackRock's IBIT saw record net inflows: $1.1 billion flowed into its Bitcoin fund, surpassing the previous record of nearly $900 million set at the end of October.

“We expect continued inflows into both exchanges and ETFs, which will lead to increased market volatility and potential spillover effects to other crypto investment funds,” Caroline Bowler, managing director of BTC Markets, said in emailed comments, citing the 300% increase in BTC Markets user signups this week.

“This could lead to broader liquidity and trading volume. There is also a significant risk of a feedback loop where rising ETF inflows drive up Bitcoin prices and attract more capital. Overall, this surge in interest suggests that Bitcoin is increasingly being viewed as a core investment. “It is an asset rather than a speculative play, potentially marking the start of a sustained period of increased activity in the crypto market.”

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