BlackRock Sees 121% Bitcoin Rally, $72 Billion Inflows

BlackRock, the world's largest asset manager, has highlighted a growing interest among institutions and wealth advisors in Bitcoin, but emphasized that the adoption is still in its early stages. Robert Mitchnick, the head of digital assets at
, stated in an interview that wealth advisors are increasingly turning towards Bitcoin, marking a positive development. However, he stressed that this trend is still in its infancy, with more institutions expected to follow suit in the near future.Mitchnick's comments come as the BlackRock iShares Bitcoin Trust (IBIT) approaches $72 billion in net assets. The Bitcoin investment fund experienced significant demand between April and May, with a net inflow of $5.91 billion in May alone, marking its strongest month since March 2024. This surge in interest is reflected in recent 13-F filings with the US SEC for Q1 2025, which showed growing exposure from wealth advisors towards Bitcoin spot ETFs. Notable institutions, such as
and the Abu Dhabi sovereign wealth fund, Mubadala, have increased their exposure to Bitcoin.Mitchnick acknowledged the growing adoption of the Bitcoin ETF wrapper among new and experienced institutions. He noted that the approval process for new ETFs is thorough, as institutions conduct due diligence on the nature and viability of the fund. However, he identified a strong interest among some of the largest firms, with some lowering their barriers to allow advisors to buy Bitcoin. The IBIT has been one of the most successful ETF launches in history, becoming the fastest to reach a net asset under management of $50 billion and now exceeding $71 billion.
Mitchnick highlighted several bullish catalysts driving the stunning growth of the IBIT. Initially, pent-up demand for the vehicle, which tracks Bitcoin’s performance, started with retail investors. High-net-worth individuals, including several billionaires, have also gained exposure to Bitcoin and related products. Mitchnick revealed steady progress in institutional adoption, with massive demand fueling incessant inflows into the funds.
Despite acknowledging Bitcoin's volatility, Mitchnick noted that its risk and return drivers are markedly different from most traditional assets. He emphasized that Bitcoin offers a unique appeal to investors, having been one of the best-performing assets of the last decade. The pioneering cryptocurrency rallied 121% last year and is up 15% year-to-date. At the time of writing, it trades at $109,608, representing a 3.78% increase in the past 24 hours.
Mitchnick also discussed BlackRock’s Ethereum spot ETF, which is currently driven by retail investor attraction. He noted that while there is an exciting story surrounding Ethereum, similar to Bitcoin, it focuses more on technological innovation and blockchain adoption. This indicates a broader trend of institutional interest in digital assets, with Bitcoin leading the way.

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