In a recent Twitter thread by the popular technology and cryptocurrency influencer and popular communicator @Techconcatalina, it was revealed that BlackRock and other major banks have been quietly buying Bitcoin even before an ETF was available. While the SEC was busy accusing Binance and Coinbase, these banks were increasing their exposure to cryptocurrency.
BlackRock, Bank of America, and Fidelity are among the banks mentioned in the thread. These banks are among the largest shareholders in the company of one of Bitcoin’s biggest maximalists, Michael Saylor‘s MicroStrategy (MSTR), which is the largest institutional holder of Bitcoin with a total of 140K BTC.
The thread raises the question of why these banks are buying shares related to the price of Bitcoin if the SEC has recently filed several lawsuits. The answer seems to be that without an ETF in the US, buying MSTR is the easiest way for some American investors to gain exposure to the price of BTC.
Bank of America, for example, increased its exposure to MSTR by 47,800% in the first quarter of 2023. This is the second-largest bank in the US. Meanwhile, BlackRock, the world’s largest asset manager, has a 6% stake in MSTR worth over $156 million.
Fidelity, another giant company with over $4.5 trillion in AUM, also increased its exposure to MicroStrategy by 28,000%, owning a 1% stake in MSTR.
It’s not just US banks that are buying MSTR; there is a global appetite for exposure to Bitcoin in 2023. The sixth-largest bank in Canada bought more than half a million dollars worth of MicroStrategy shares.
The thread concludes by asking why all these banks are doing this at the beginning of 2023. The price of Bitcoin has dropped 58% from its all-time high, and now a Bitcoin ETF is being announced with the intention of boosting the price again.
What do you think? Share your thoughts and conclusions with us at @CryptoPress_ok.
Source: @Techconcatalina
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