- What percentage of Bitcoin does BlackRock hold?
BlackRock entered the Bitcoin market through the iShares Bitcoin Trust (IBIT), marking a new era of institutional Bitcoin accumulation.
Since its launch on January 11, 2024, IBIT has grown at an unexpected rate, surpassing all other ETFs. As of June 10, 2025, BlackRock holds over 662,500 Bitcoin, accounting for over 3% of the total Bitcoin supply. At current prices, this equates to a Bitcoin exposure of $72.4 billion, an astonishing figure by any standard.
In contrast, the SPDR Gold Shares (GLD) took over 1,600 trading days to reach a managed asset size of $70 billion. IBIT achieved this goal in just 341 days, making it the fastest-growing ETF in history. This is not only a milestone for BlackRock itself but also indicates that institutional investors’ interest in Bitcoin has matured significantly.
BlackRock’s Bitcoin holdings now exceed those of many centralized exchanges and even large corporate holders like Strategy. In terms of original Bitcoin holdings, only Satoshi Nakamoto’s estimated 1.1 million Bitcoin holdings surpass IBIT, and this lead is narrowing.
If inflows continue at the current pace, IBIT could eventually become the largest single holder of Bitcoin, which would significantly alter Bitcoin’s supply distribution and ownership concentration.
BlackRock’s Long-Term Accumulation of Bitcoin
Did you know? Coinbase Custody (not BlackRock) holds the private keys for the BTC in IBIT, securely storing customer assets offline and backed by commercial insurance.
- Why is BlackRock making a major bet on Bitcoin in 2025?
Behind BlackRock’s large-scale allocation is a shift in its strategic perspective: it now views Bitcoin as a legitimate component of a long-term, diversified investment portfolio.
BlackRock’s Bitcoin Strategy
BlackRock’s internal argument is: accept Bitcoin’s volatility in exchange for its potential upside. Through IBIT (iShares Bitcoin Trust), they are betting that broader adoption will gradually stabilize this asset, improve price discovery, enhance liquidity, and narrow bid-ask spreads.
In their view, Bitcoin is a long-term bet on the evolution of money and the infrastructure of digital assets. This philosophy from the world’s largest asset manager sends a strong signal to peers. It shifts institutional discussions about Bitcoin from “whether to participate” to “how much to allocate.”
The Investment Logic Behind Institutional Bitcoin Accumulation
BlackRock highlights several key factors supporting its positive outlook on Bitcoin by 2025:
Scarcity design: Bitcoin has a total supply cap of 21 million units, with issuance controlled through a halving mechanism, making its scarcity comparable to gold but underpinned by a digital architecture. Some estimates suggest that a significant portion of existing Bitcoin has been lost or is inaccessible, further tightening the actual circulating supply.
An alternative to the US dollar’s hegemony: In the context of expanding sovereign debt and geopolitical fragmentation, Bitcoin’s decentralized nature offers a hedge against fiat currency risks. It is positioned as a neutral reserve asset to counteract government overreach and currency manipulation.
Part of the digital transformation: BlackRock views Bitcoin as a proxy indicator of macro trends—the shift from an “offline” to an ‘online’ value system, encompassing finance, commerce, and even intergenerational wealth transfer. They believe this trend is driven by demographic “super forces,” particularly the rising influence of younger investors.
These factors combined give Bitcoin risk-return characteristics that traditional asset classes cannot replicate. BlackRock’s statement is that Bitcoin provides an “additional source of diversification,” providing a strong case for its inclusion in mainstream investment portfolios.
BlackRock’s Cryptocurrency Investment Portfolio Integration
BlackRock advocates a cautious strategy: allocating 1% to 2% of Bitcoin in a traditional 60/40 stock-bond portfolio. While this may seem like a small proportion, it is sufficient to have an impact on institutional-level portfolios and gradually gain acceptance among conservative asset allocators.
They also compare Bitcoin’s risk profile to high-volatility tech stocks (such as the “Big Seven”) to demonstrate its reasonable position within standard investment models.
Interestingly, the unintended byproduct (“dust”) generated during Bitcoin transactions within IBIT contains small amounts of other tokens. BlackRock typically stores these tokens separately or donates them to charities to avoid tax complexities.
- Market Impact of Bitcoin ETFs
BlackRock holds over 3% of the total Bitcoin supply through IBIT, marking a turning point for Bitcoin in terms of recognition, trading, and regulation.
Bitcoin has historically been known for its volatility, stemming from its fixed supply, emotional fluctuations, and regulatory uncertainty. In the past, large transactions often caused significant market disruptions due to low liquidity. As IBIT absorbs hundreds of thousands of BTC, the question arises: will institutional capital stabilize the market or further complicate it?
Supporters of the ETF model argue that institutional investment helps reduce volatility. With regulated institutions like BlackRock participating, Bitcoin will become more liquid, transparent, and resilient to abnormal fluctuations.
BlackRock has also explicitly stated that broader participation can improve price discovery, deepen market liquidity, and ultimately foster a more stable trading environment.
However, critics (including some scholars) warn that large-scale institutional participation could introduce traditional market risks into Bitcoin, such as leveraged trading, algorithm-triggered flash crashes, and price manipulation through ETF flows.
In other words, the financialization of Bitcoin may replace the original retail-driven FOMO with another form of volatility (systemic, leverage-driven risks). Furthermore, as ETF influence grows, Bitcoin may become more correlated with other financial assets, undermining its value as a “non-correlated hedge.”
- Institutional accumulation grants Bitcoin mainstream legitimacy
There is no doubt that BlackRock’s crypto strategy has propelled Bitcoin from a niche asset to a mainstream investment tool.
Over the years, Bitcoin was often ignored or even dismissed by large financial institutions. BlackRock’s significant holdings indicate a shift in attitude. The launch of IBIT (and its rapid growth into one of the world’s largest Bitcoin holders) has granted Bitcoin greater legitimacy than any white paper or conference could achieve.
ETFs like IBIT offer a familiar, regulated investment channel, particularly suited for institutions wary of the technical complexities or custody risks associated with directly holding cryptocurrencies. BlackRock’s involvement reduces reputational risk for other institutions, driving Bitcoin’s adoption in traditional investment portfolios.
Retail investors also benefit: they can gain exposure to Bitcoin with a single click through a broker, without having to deal with wallets, mnemonic phrases, or gas fees.
Fun fact: Abu Dhabi’s Mubadala Sovereign Wealth Fund holds a significant stake in IBIT, with filings showing an investment of approximately $409 million.
- BlackRock holds 3% of Bitcoin: The Paradox of Centralization
Bitcoin was originally designed as an alternative to centralized finance. However, today, when the world’s largest asset management firm purchases over 600,000 BTC through centralized tools, a paradox emerges: decentralized assets are increasingly being controlled by centralized institutions.
Currently, most users rely on centralized exchanges (CEX), custodians, or ETFs. These platforms offer greater convenience, security features such as insurance and cold storage, and compliance with regulatory requirements (KYC, AML). In contrast, decentralized tools like DEXs or self-custody wallets face high barriers to entry, low liquidity, and lack of protection.
Therefore, even though Bitcoin remains decentralized on a technical level, most people interact with it through centralized channels. BlackRock’s Bitcoin accumulation is a prime example of this phenomenon. Some view this as deviating from Satoshi Nakamoto’s vision, while others see it as a necessary compromise—a “centralized access layer” that enables Bitcoin to truly go global. This is the core of the Bitcoin centralization debate: how to balance ideological purity with practical adoption.
The market currently seems to have accepted a hybrid model: a decentralized underlying layer combined with a centralized access layer.
- The Regulatory Catch-Up Game
BlackRock’s ability to launch IBIT stems from a key decision: the U.S. Securities and Exchange Commission (SEC) approved a spot Bitcoin ETF in early 2024. This broke years of deadlock and opened the floodgates for institutional capital. However, the broader regulatory environment remains inconsistent and even contradictory.
One of the biggest challenges is asset classification. The SEC continues to waver, for example, on whether Ethereum (ETH) and Solana (SOL) are securities. This regulatory gray area has delayed the development of staking ETFs or altcoin ETPs, leaving investors, developers, and issuers in confusion. Commissioner Caroline Crenshaw has pointed out that the SEC’s current stance creates “murky waters,” leading to passive enforcement and stifling innovation. This directly impacts whether institutions dare to invest beyond Bitcoin.
Currently, Bitcoin enjoys a relatively clear regulatory path. However, to mature the broader crypto market (such as Ethereum ETFs and DeFi-linked products), establishing a more consistent, globally coordinated regulatory framework is crucial.
Institutions are ready—but they need trustworthy rules.
