Ethereum News Today: BlackRock Invests $4.33 Billion in Bitcoin, Ethereum as Crypto Market Reaches $4 Trillion

BlackRock, the world’s largest asset manager, has made a significant $4.33 billion investment in Bitcoin and Ethereum over the past week, according to blockchain analytics firm Arkham Intelligence. The firm acquired $2.57 billion in Bitcoin (BTC) and $1.76 billion in Ethereum (ETH), marking its largest on-chain crypto purchase to date. This move underscores growing institutional demand for digital assets and positions BlackRock as a key player in shaping the crypto market’s institutional trajectory.

The purchases have expanded BlackRock’s on-chain crypto holdings to over $93.9 billion, with Bitcoin accounting for approximately 92% of its total portfolio. However, Ethereum has seen a notable uptick in institutional allocation, with the firm’s recent ETH acquisitions surpassing Bitcoin in terms of weekly inflows. This aligns with broader market trends, as Ethereum’s institutional adoption has surged, including $2.12 billion in weekly inflows across the network, driven by products like BlackRock’s ETHA fund and Fidelity’s FETH fund.

BlackRock’s strategy extends beyond major cryptocurrencies, with a focus on low-cap tokens. Imagen Network (IMAGE), a Solana-based token, has become the firm’s third-largest crypto holding, valued at approximately $445,920. This diversification strategy highlights a shift toward risk-balanced exposure across the crypto ecosystem, reflecting confidence in emerging blockchain platforms and use cases.

The firm’s recent activity has coincided with a record $4.39 billion in crypto inflows across institutional products, pushing total assets under management to $220 billion. Bitcoin and Ethereum ETFs have been central to this growth, with BlackRock’s IBIT ETF attracting $2.57 billion in net inflows. These figures signal a maturing market where digital assets are increasingly viewed as core components of diversified portfolios.

BlackRock’s actions are amplifying Ethereum’s role as a strategic asset. Despite Bitcoin’s dominance in the firm’s overall holdings, Ethereum has attracted more capital in recent weeks, with weighted market cap allocations showing a 5:1 preference for ETH over BTC. This trend aligns with Ethereum’s ongoing upgrades and its expanding use in decentralized finance (DeFi) and enterprise applications, which have drawn institutional interest.

The surge in institutional participation coincides with a broader market milestone: the cryptocurrency market has reached a $4 trillion valuation for the first time. Regulatory clarity in the U.S. and global capital reallocation from traditional assets to crypto have fueled this growth. BlackRock’s $4.33 billion investment reinforces the sector’s institutional credibility, with analysts noting that such activity could accelerate regulatory adoption and mainstream acceptance.

As the market evolves, BlackRock’s approach reflects a balance between securing exposure to established assets like Bitcoin and capitalizing on Ethereum’s utility-driven growth. With its on-chain portfolio rising by $14.3 billion in July alone, the firm’s actions are reshaping perceptions of crypto as a strategic, long-term asset class. This shift is likely to influence future allocations, as institutional investors continue to integrate digital assets into their portfolios amid ongoing regulatory developments.