Bitcoin News Today: BlackRock’s Bitcoin Bet Reshapes the Future of Finance

BlackRock’s iShares Bitcoin Trust (IBIT) has reached $91.06 billion in assets under management as of August 13, 2025, marking a significant milestone in the U.S. spot Bitcoin exchange-traded fund (ETF) market. This figure reflects a rapid growth trajectory, with IBIT capturing 3.72% of the total supply of bitcoin, equivalent to over 662,500 BTC. This valuation places BlackRock ahead of major competitors such as Fidelity’s FBTC and Grayscale’s GBTC, which manage $24.77 billion and $22.18 billion, respectively [1].

The rapid accumulation of Bitcoin by BlackRock has been unprecedented in the ETF landscape. Since its January 2024 debut, IBIT has attracted over $5 billion in net inflows during its first month, setting a record for new U.S. ETFs. By mid-July 2025, it had crossed $80 billion in cumulative net inflows, further solidifying its dominance in the Bitcoin ETF space [1]. This growth has outpaced historical benchmarks: SPDR Gold Shares (GLD) took over 1,600 trading days to reach a $70 billion asset under management scale, while IBIT achieved the same in just 341 days [2].

BlackRock’s substantial Bitcoin holdings have sparked discussions about the implications for market structure and volatility. The firm has stated that broader participation in Bitcoin improves price discovery, deepens market liquidity, and can lead to a more stable trading environment over time. Despite recent market turbulence—triggered by hotter-than-expected U.S. inflation data and a sharp reversal in Bitcoin’s price—IBIT has continued to attract inflows. Bitcoin’s price briefly surged to $124,000 before retreating below $118,000, leading to over $1 billion in crypto market liquidations. However, BlackRock’s fund has remained resilient, drawing both institutional and retail investors [1].

The firm’s strategic perspective on Bitcoin has evolved to view it as a legitimate component of a diversified portfolio. BlackRock advocates allocating 1% to 2% of a traditional 60/40 stock-bond portfolio to Bitcoin, recognizing its potential to serve as a hedge against fiat currency risk and provide diversification. This position aligns with its broader assessment that Bitcoin’s scarcity—capped at 21 million coins—positions it as a digital alternative to gold, while its decentralized nature offers a counterbalance to dollar hegemony [2].

While the institutionalization of Bitcoin through ETFs like IBIT has conferred mainstream legitimacy on the asset class, it has also raised concerns about centralization. Critics argue that the growing influence of large institutional holders could alter Bitcoin’s original ethos as a decentralized currency. However, BlackRock maintains that its role as a custodian—through Coinbase Custody, which holds the private keys for IBIT’s BTC—ensures the security and integrity of client assets [2]. The firm’s participation has also encouraged other institutions to consider Bitcoin as a viable investment option, reducing reputational and technical barriers for traditional investors.

The regulatory environment has played a crucial role in enabling this shift. The U.S. Securities and Exchange Commission’s (SEC) approval of a spot Bitcoin ETF in early 2024 unlocked institutional capital flows and created a clearer framework for crypto investment. However, challenges remain, particularly in the classification of other cryptocurrencies and the development of a consistent global regulatory approach. While Bitcoin enjoys a relatively stable regulatory pathway, broader adoption of crypto investment strategies will depend on the resolution of these uncertainties [2].

Source: [1] BlackRock ETF 91B Record (https://bitbo.io/news/blackrock-etf-91b-record/) [2] BlackRock Holds Over 3% of Bitcoin Supply (https://news.futunn.com/en/post/60856651/what-does-blackrock-quietly-amassing-3-of-bitcoin-signify)