Blackstone Dips Toes in Crypto Waters—Snags $1M Bitcoin ETF in First Foray

Wall Street’s trillion-dollar gorilla finally joins the digital gold rush.

Blackstone—the heavyweight private equity firm that once scoffed at crypto—just placed a $1 million bet on Bitcoin ETFs. Not exactly ’all-in,’ but for institutional dinosaurs, even touching blockchain is progress.

Why now? Maybe they noticed Bitcoin’s 150% rally this year. Or perhaps FOMO hit harder than their risk committee’s objections. Either way, it’s a baby step toward legitimacy for an asset class Wall Street still loves to hate—between martini lunches, of course.

Funny how a million bucks feels like pocket change when you manage $10 trillion. But hey, slow and steady wins the race… unless you’re up against a 24/7 market that doesn’t close for Hamptons weekends.

• Blackstone made its first crypto-related investment by purchasing Bitcoin ETFs worth $1.08 million.
• The firm added 23,094 shares of BlackRock’s iShares Bitcoin Trust ETF to its Alternative Multi-Strategy Fund.
• Blackstone also bought 9,889 shares of the ProShares Bitcoin ETF valued at $181,166.

Blackstone entered crypto by purchasing $1.08 million worth of Bitcoin ETFs. This marks Blackstone’s first-ever investment in digital assets. BlackRock’s iShares Bitcoin Trust ETF (IBIT) shares were added to the Alternative Multi-Strategy Fund run by the firm.

The move highlights a shift in Blackstone’s approach, as the firm historically avoided direct exposure to cryptocurrencies. On March 31, it had $1.2 trillion in assets under management. The new crypto assets amount to less than 1% of the portfolio, representing an important policy shift.

Blackstone also disclosed its stake in two other Bitcoin-related securities. They are now part of the firm’s broader efforts in alternative assets. The risk caused by crypto exposure is not big, but financial firms still consider it.

Blackstone Allocates to BlackRock’s iShares Bitcoin Trust ETF (IBIT)

Blackstone purchased 23,094 shares of IBIT during the first quarter of 2025. The transaction raised the company’s IBIT exposure to $1.08 million. Blackstone included the shares in its Alternative Multi-Strategy Fund (BTMIX), which manages $2.63 billion in assets.

Despite past reservations from Square’s leaders about cryptocurrencies, this decision was made. Blackstone’s CEO previously expressed skepticism about digital currencies. The fund’s earlier views have been replaced by the decision made now.

For the last six weeks, IBIT has regularly seen net inflows. Six months after launching in January 2024, more than $46.1 billion was added to the fund. That growth makes IBIT the top U.S. spot bitcoin ETF.

ProShares Bitcoin ETF (BITO) Gains Modest Exposure from Blackstone

Blackstone also acquired 9,889 shares of the ProShares Bitcoin ETF (BITO). The total had grown to $181,166 as of March 31. Users can only access Bitcoin by trading futures via BITO, not by holding actual coins.

Canada is introducing regulated ETFs in digital assets with another careful step. Blackstone used this approach to limit risk while gaining market presence. The investment follows the direction of the fund’s alternative strategy.

Many choose BITO as a convenient way to access Bitcoin price changes. Its design allows firms like Blackstone to test crypto strategies. The purchase diversifies Blackstone’s exposure across multiple crypto-linked instruments.

Bitcoin Depot Inc. Shares Also Enter Blackstone Portfolio

Blackstone reported buying 4,300 shares of Bitcoin Depot Inc. (BTM) during the same quarter, which together were worth $6,300. Throughout North America, Bitcoin Depot provides service on many crypto ATMs.

It’s not a large role, but it does highlight interest in crypto infrastructure. By adding BTM, Blackstone gains indirect exposure to retail-facing digital asset services. This is in addition to the ETFs the company has invested in concerning blockchain.