- IBIT Bitcoin ETF dropped 11% last week but retains $39.6B in assets amid crypto declines.
- Investors withdrew $1B from IBIT due to falling prices and derivatives market adjustments, affecting US ETFs.
BlackRock, a U.S.-based asset management firm and the largest global provider of Bitcoin exchange-traded funds (ETFs), has agreed to purchase two ports located at the Pacific and Atlantic ends of the Panama Canal.
The $22.8 billion deal, announced Tuesday, involves acquiring the Balboa and Cristóbal ports from CK Hutchison, a Hong Kong company previously criticized by former U.S. President Donald Trump for its ties to China.
The transaction grants BlackRock and its investor group majority control over 43 additional ports across 23 countries, though facilities in China and Hong Kong are excluded. CK Hutchison described the agreement as “preliminary.” The ports are part of a broader network handling cargo traffic through the Panama Canal, a vital maritime route linking the Atlantic and Pacific Oceans.
During his presidency, Trump repeatedly emphasized a desire to “reclaim” U.S. influence over the canal, which Panama assumed full control of in 1999 under a 1977 treaty. Trump cited concerns about Chinese-linked companies operating near the waterway, though no evidence of direct interference was provided.
BlackRock CEO Larry Fink stated the newly acquired ports “support global trade growth” and highlighted the firm’s partnerships with governments and corporations as factors enabling long-term investment strategies. BlackRock manages $11.6 trillion in assets, equivalent to roughly 40% of U.S. annual economic output.
The acquisition coincides with recent turbulence in BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT). Last week, IBIT shares fell 11%, closing at $46.07—their lowest price in four months.
Trading volumes surged to 331 million shares, levels last seen in November 2023. Investors withdrew over $1 billion from the fund, driven by declining Bitcoin prices and shifts in derivatives markets. The sell-off also impacted other U.S. Bitcoin ETFs, which reported combined outflows exceeding $1.3 billion.
Despite the downturn, IBIT remains the world’s largest Bitcoin ETF, holding $39.6 billion in assets. The contrast between BlackRock’s port expansion and its cryptocurrency market challenges underscores the firm’s diversified strategy.
The agreement awaits regulatory approvals, with no timeline disclosed for finalization. Both BlackRock and CK Hutchison declined to comment on potential operational changes at the ports.
