BlackRock identifies 2 cryptocurrencies investors should focus on

When the world’s largest asset manager narrows its attention to just two crypto assets, investors pay attention. BlackRock’s latest positioning suggests that, out of thousands of cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) are the digital assets it views as core allocations.

Why this matters now

In Q3 2025 alone, BlackRock increased its crypto holdings by over $22.46 billion, according to Finbold’s Q3 Cryptocurrency Market Report. That growth was driven largely by fresh exposure to Ethereum alongside steady Bitcoin accumulation.

At the same time, BlackRock’s iShares Bitcoin Trust (IBIT) has dominated U.S. ETF flows. Research shows that without IBIT, U.S. spot Bitcoin ETFs would have been net negative for the year, underscoring how much institutional demand is being funnelled into a single product

IBIT daily inflows. Source: Thomas Fahrer## Bitcoin is still the anchor

BlackRock continues to treat Bitcoin as its anchor crypto. Bitcoin remains the most liquid, most widely held, and most regulation-friendly asset in the sector. Its status as “digital gold” still resonates with portfolio managers seeking uncorrelated hedges. Even BlackRock CEO Larry Fink recently suggested Bitcoin could one day reach $700,000 if ETF inflows sustain long enough.

Fink said you own crypto if you believe “countries are going to continue to debase their currency.”

JUST IN: $13 trillion BlackRock CEO Larry Fink says you own crypto if you believe “countries are going to continue to debase their currency.” pic.twitter.com/n1YCN3GQaq

— Bitcoin Magazine (@BitcoinMagazine) October 28, 2025

JUST IN: $13 trillion BlackRock CEO Larry Fink says you own crypto if you believe “countries are going to continue to debase their currency.” pic.twitter.com/n1YCN3GQaq

BTC may not deliver the explosive upside of smaller coins, but as long as institutions like BlackRock keep buying, BTC remains the sector’s benchmark.

Ethereum is the growth play

If Bitcoin is the anchor, Ethereum is where BlackRock sees growth potential. According to Finbold’s report, Ethereum holdings within BlackRock’s crypto exposure rose sharply in Q3, outpacing Bitcoin’s growth rate.

Why Ethereum? Unlike Bitcoin, Ethereum is not just a store of value, it underpins DeFi, staking, tokenisation, and smart contracts. That makes it the preferred vehicle for exposure to crypto utility rather than just scarcity. Wall Street analysts are even framing Ethereum as the “infrastructure bet” of crypto, particularly as tokenised U.S. Treasuries and real-world assets migrate onto its rails.

BlackRock’s October activity reflects this split approach. Between October 1 and October 29, 2025, the firm’s digital asset holdings jumped from $103.8 billion to $108.3 billion, according to wallet-tracking data.

BlackRock’s crypto holdings. Source: ArkhamBlackRock’s crypto holdings. Source: ArkhamThe increase was driven by heavy accumulation of both Bitcoin and Ethereum. In just under a month, BlackRock added 36,570 BTC (around $3.98 billion) and nearly 218,000 ETH (roughly $520 million).