Author: Bradley Peak Source: Cointelegraph
Translated by: Shan Ouba, Golden Finance
1. What percentage of Bitcoin does BlackRock hold?
BlackRock's entry into the Bitcoin market through iShares Bitcoin Trust (IBIT) marks a new era of institutional Bitcoin accumulation.
Since its launch on January 11, 2024, IBIT's growth has been unexpected, far surpassing other ETFs. As of June 10, 2025, BlackRock holds over 662,500 Bitcoin, accounting for more than 3% of the total Bitcoin supply. At current prices, this represents an exposure of $72.4 billion in Bitcoin, which is an astounding figure by any standard.
In comparison, SPDR Gold Shares (GLD) took over 1,600 trading days to reach $70 billion in assets under management. IBIT achieved this milestone 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 interest in Bitcoin is maturing.
BlackRock's Bitcoin holdings now exceed those of many centralized exchanges and even larger corporate holders like Strategy. In terms of original holdings, only Satoshi Nakamoto's estimated 1.1 million Bitcoins surpass IBIT, and this lead is shrinking.
If inflow continues at the current rate, IBIT could ultimately become the largest single holder of Bitcoin, significantly impacting Bitcoin's supply distribution and ownership concentration.
BlackRock's Long-Term Accumulation of Bitcoin
Did you know? Coinbase Custody (rather than BlackRock) holds the private keys for BTC in IBIT, securely storing client assets offline and supported by commercial insurance.
2. Why is BlackRock making a major bet on Bitcoin in 2025?
Behind BlackRock's massive allocation is a strategic shift in perspective: they have come to view Bitcoin as a legitimate component of a long-term, diversified 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 bet 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 currency and digital asset infrastructure. This idea from the world's largest asset manager sends a strong signal to peers. It shifts the discussion about institutional involvement in Bitcoin from 'should we participate' to 'how much should we allocate.'
The Investment Logic of Institutional Bitcoin Accumulation
Several key factors make BlackRock optimistic about Bitcoin in 2025:
Scarcity design: Bitcoin has a cap of 21 million coins, with a halving mechanism controlling issuance, making its scarcity similar to gold but backed by digital architecture. Some estimates suggest that a large number of existing Bitcoins are lost or inaccessible, tightening the actual circulating supply.
An alternative to dollar hegemony: Against the backdrop of sovereign debt expansion and geopolitical fragmentation, Bitcoin's decentralized nature provides a hedge against fiat currency risks. It is positioned as a neutral reserve asset, protecting against government overreach and currency manipulation.
Part of the digital transformation: BlackRock sees Bitcoin as a proxy indicator of macro trends—shifting from an 'offline' to an 'online' value system, covering finance, business, and even wealth intergenerational transfer. They believe this trend is driven by demographic 'super-drivers,' especially the rising influence of younger investors.
These factors combine to give Bitcoin risk-return characteristics that traditional asset classes cannot replicate. BlackRock states that Bitcoin provides 'additional sources of diversification,' making a strong case for its inclusion in mainstream portfolios.
Integration of BlackRock's Crypto Portfolio
BlackRock advocates for a cautious strategy: allocating 1% to 2% of Bitcoin in a traditional 60/40 stock-bond portfolio. It may seem like a small percentage, but it is significant enough for institutional-level portfolios and allows conservative asset allocators to gradually accept Bitcoin.
They also compare Bitcoin's risk profile to high-volatility tech stocks (like the 'Big Seven') to demonstrate its reasonable position within standard investment models.
Interestingly, the unexpected byproducts ('dust') generated during internal Bitcoin transactions in IBIT include a small amount of other tokens. BlackRock typically stores these tokens separately or donates them to charities to avoid tax complications.
3. 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 cognition, trading, and regulation.
Bitcoin has historically been known for its volatility, stemming from fixed supply, emotional swings, and regulatory uncertainty. In the past, due to thin market liquidity, large trades often caused severe shocks. As IBIT absorbs hundreds of thousands of BTC, the question is whether institutional capital will stabilize the market or further complicate it.
Proponents of the ETF model argue that institutional investment helps reduce volatility. With regulated entities like BlackRock participating, Bitcoin will become more liquid, transparent, and resilient against abnormal fluctuations.
BlackRock has also made it clear that broader participation can improve price discovery, deepen market liquidity, and ultimately facilitate a more stable trading environment.
However, critics (including some scholars) warn that large-scale institutional participation could bring 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 have replaced the original retail-driven FOMO with another kind of volatility (systematic, leverage-driven risk). Moreover, as ETF influence grows, Bitcoin may become more correlated with other financial assets, diminishing its value as a 'non-correlated hedge.'
4. Institutional Accumulation Gives Bitcoin Mainstream Legitimacy
Undoubtedly, BlackRock's crypto strategy has pushed Bitcoin from a fringe asset to a mainstream investment tool.
For years, Bitcoin was overlooked or even belittled by large financial institutions. BlackRock's deep holdings indicate a change in attitude. The launch of IBIT (and its rapid growth into one of the largest Bitcoin holders globally) grants Bitcoin more legitimacy than any white paper or conference.
ETFs like IBIT provide a familiar, regulated investment channel, especially suitable for institutions with concerns about the technical complexities or custodial risks of directly holding crypto assets. BlackRock's involvement reduces the reputational risk for other institutions, promoting the adoption of Bitcoin in traditional portfolios.
Retail investors also benefit: no need to deal with wallets, seed phrases, and gas fees—just a click through a broker to gain Bitcoin exposure.
Interesting fact: Abu Dhabi's Mubadala Sovereign Wealth Fund holds a significant stake in IBIT, with disclosed investments totaling approximately $409 million.
5. BlackRock holds 3% of Bitcoin: The Centralized Paradox
Bitcoin was originally designed as an alternative to centralized finance. Yet now, with the world's largest asset management company purchasing over 600,000 BTC through centralized tools, a paradox arises: decentralized assets are gradually being controlled by centralized institutions.
Today, most users rely on centralized exchanges (CEX), custodians, or ETFs. These platforms offer more convenient operations, with security features like insurance and cold storage, while meeting regulatory requirements (KYC, AML). In contrast, decentralized tools like DEX or self-custody wallets face high barriers, low liquidity, and lack of protection.
Therefore, even though Bitcoin remains decentralized at the technical level, most people actually interact with it through centralized channels. BlackRock's Bitcoin accumulation is a typical representation of this phenomenon. Some argue this deviates from Satoshi's vision, while others see it as a necessary compromise—a form of 'centralization of the access layer' that allows Bitcoin to truly globalize. This is at the heart of the Bitcoin centralization debate: how to strike a balance between ideological purity and practical adoption.
Currently, the market seems to have adopted a hybrid model: decentralized underlying + centralized access layer.
6. 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 has been wavering regarding 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 confused. Commissioner Caroline Crenshaw has pointed out that the SEC's current stance creates 'murky waters,' leading to passive enforcement that stifles innovation. This directly impacts whether institutions dare to invest outside of Bitcoin.
Currently, Bitcoin enjoys a relatively clear regulatory path. However, establishing a more consistent, globally coordinated regulatory framework is crucial for the broader crypto market (such as Ethereum ETFs and DeFi-linked products) to mature.
Institutions are ready—but they need reliable rules.
