BlackRock's iShares Bitcoin Trust Accumulates 3% of Bitcoin Supply in 17 Months

BlackRock, the world’s largest asset manager, has made a significant entry into the Bitcoin market through its iShares Bitcoin Trust (IBIT). Since its launch on January 11, 2024, IBIT has rapidly accumulated over 662,500 BTC by June 10, 2025. This amount represents more than 3% of Bitcoin’s total supply, valued at approximately $72.4 billion at current prices. This accumulation marks a new era in institutional Bitcoin investment, as IBIT has become the fastest-growing ETF in history, surpassing the growth rate of SPDR Gold Shares (GLD), which took over 1,600 trading days to reach $70 billion in assets under management, a milestone IBIT achieved in just 341 days.

BlackRock’s Bitcoin holdings now surpass those of many centralized exchanges and major corporate holders, second only to Satoshi Nakamoto’s estimated 1.1 million BTC. If the current pace of inflows continues, IBIT could eventually become the single largest holder of Bitcoin, significantly altering the distribution and concentration of Bitcoin ownership. Coinbase Custody holds the private keys for the BTC in IBIT, ensuring the safe storage of client assets offline and backed by commercial insurance.

BlackRock’s strategic shift towards viewing Bitcoin as a legitimate component of long-term, diversified portfolios is driven by several factors. The firm embraces Bitcoin’s volatility as a tradeoff for its potential upside, betting on broader adoption to stabilize the asset over time. This philosophy reframes the conversation around institutional adoption of Bitcoin, shifting it from “whether” to “how much” exposure is appropriate. BlackRock highlights Bitcoin’s scarcity, its role as an alternative to dollar-dominance, and its position as part of the broader digital transformation. These factors provide distinct risk-return characteristics that traditional asset classes cannot replicate, making a compelling case for Bitcoin’s integration into mainstream portfolios.

BlackRock advocates for a measured approach to Bitcoin exposure, recommending 1% to 2% allocation within a traditional 60/40 stock-bond mix. This small percentage, in a portfolio of institutional scale, is enough to generate impact and normalize Bitcoin exposure for conservative allocators. The firm also benchmarks Bitcoin’s risk profile against high-volatility equities, demonstrating how it can fit within standard portfolio models. Unexpected by-products from Bitcoin transactions within IBIT, such as tiny amounts of other tokens, are kept in a separate wallet or donated to charity to avoid tax complications.

BlackRock’s decision to accumulate over 3% of Bitcoin’s total supply through IBIT is a turning point for how Bitcoin is perceived, traded, and regulated. Supporters of the ETF model argue that institutional Bitcoin investment helps reduce volatility, making Bitcoin more liquid, transparent, and resistant to erratic moves. BlackRock itself has stated that broader participation improves Bitcoin price discovery, deepens market liquidity, and can lead to a more stable trading environment over time. However, critics warn that large-scale institutional involvement introduces traditional market risks into Bitcoin, such as leveraged trading, flash crashes, and price manipulation via ETF flows. This financialization may trade one kind of volatility for another, and as ETFs grow in influence, Bitcoin may become more correlated with other financial assets, undermining its value as an uncorrelated hedge.

BlackRock’s crypto strategy has turned Bitcoin from a fringe asset into a mainstream investment tool. The launch of IBIT and its rapid ascent to become one of the largest Bitcoin holders globally has legitimized Bitcoin in a way no white paper or conference ever could. ETFs like IBIT offer a familiar, regulated structure for exposure, especially for institutions wary of the technical complexity or custodial risks of direct crypto ownership. BlackRock’s involvement reduces reputational risk for others on the fence, effectively normalizing Bitcoin ownership by institutions and accelerating its inclusion in traditional portfolios. Retail investors also benefit, gaining exposure to Bitcoin with a click through traditional brokerages, avoiding the complexities of direct ownership.

Bitcoin was built as a decentralized alternative to centralized finance. However, when the world’s largest asset manager buys up over 600,000 BTC via a centralized vehicle, it creates a paradox: The decentralized asset is increasingly controlled by centralized institutions. Most users today rely on centralized exchanges, custodians, or ETFs for ease of use, security features, and regulatory compliance. In contrast, decentralized tools like DEXs and self-custody wallets have higher friction, lower liquidity, and less user protection. BlackRock’s Bitcoin accumulation is emblematic of this trend, where centralized access points allow Bitcoin to scale to global relevance. This is the heart of the Bitcoin centralization debate: balancing ideological purity with practical adoption. For now, the market seems to be accepting a hybrid model, with decentralized base layers and centralized access points.

BlackRock’s ability to launch IBIT was made possible by a landmark decision: the US Securities and Exchange Commission’s approval of spot Bitcoin ETFs in early 2024. That ruling broke a years-long deadlock and opened the floodgates for institutional capital. However, the broader regulatory environment remains inconsistent and often contradictory. One of the biggest challenges in the crypto space is asset classification, with the SEC sending mixed signals on whether various tokens are securities. This regulatory gray zone has delayed the development of products like staking ETFs or altcoin ETPs and created confusion for investors, developers, and issuers alike. For the broader crypto market to mature, including Ether ETFs, a more consistent and globally aligned regulatory framework will be essential. Institutions are ready to invest beyond Bitcoin, but they need rules they can trust.