Written by: Bradley Peak Source: Cointelegraph
Translated by: Shan Ouba, Jinse Finance
1. What proportion 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, unmatched by any other ETF. As of June 10, 2025, BlackRock holds over 662,500 Bitcoins, accounting for more than 3% of Bitcoin's total supply. At current prices, this equates to $72.4 billion in Bitcoin exposure, an astounding figure by any measure.
In contrast, 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, becoming the fastest-growing ETF in history. This is not only a milestone for BlackRock itself but also indicates that institutional interest in Bitcoin has matured significantly.
BlackRock's Bitcoin holdings now exceed many centralized exchanges and even large corporate holders like Strategy. In terms of original Bitcoin holdings, only Satoshi Nakamoto's estimated 1.1 million Bitcoins surpass IBIT, and this lead is narrowing.
If inflows continue at the current pace, IBIT may 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 (not BlackRock) holds the private keys for the BTC in IBIT, securely storing client assets offline and backed by commercial insurance.
2. Why is BlackRock betting heavily on Bitcoin in 2025?
Behind BlackRock's massive allocation is a shift in its strategic perspective: it has begun 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 the asset, improve price discovery, enhance liquidity, and narrow the bid-ask spread.
In their view, Bitcoin is a long-term bet on the evolution of money and the infrastructure of digital assets. This idea from the world's largest asset management company sends a strong signal to its peers. It shifts the discussion among institutions about Bitcoin from 'should we participate' to 'how much should we allocate'.
The Investment Logic for Institutions Accumulating Bitcoin
Several key factors contribute to BlackRock's optimism for Bitcoin in 2025:
Scarcity design: Bitcoin has a total cap of 21 million coins, and its issuance is controlled through a halving mechanism, making its scarcity similar to gold but backed by digital architecture. Some estimates suggest that a large amount of existing Bitcoin has been lost or is inaccessible, tightening the actual circulating supply.
An alternative to dollar hegemony: In the context of sovereign debt inflation and geopolitical fragmentation, Bitcoin's decentralized nature provides a hedge against fiat currency risks. It is positioned as a neutral reserve asset, resisting excessive government intervention and currency manipulation.
Part of digital transformation: BlackRock views Bitcoin as a proxy indicator of macro trends—shifting from an 'offline' to an 'online' value system, encompassing finance, commerce, and even intergenerational wealth transfer. They believe this trend is driven by demographic 'superforces', particularly 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.
BlackRock's Crypto Investment Portfolio Integration
BlackRock advocates a prudent strategy: allocating 1%-2% of Bitcoin in a traditional 60/40 stock-bond portfolio. While this may seem like a small proportion, it's enough to make an impact for institutional-grade portfolios and gradually allow conservative asset allocators to embrace Bitcoin.
They also compare Bitcoin's risk profile to that of highly volatile tech stocks (like the 'Seven Giants') to showcase its reasonable position in standard investment models.
Interestingly, the unexpected byproducts ('dust') generated during Bitcoin trading within IBIT contain a small amount of other tokens. BlackRock typically stores these tokens separately or donates them to charities to avoid tax complexities.
3. The Market Impact of Bitcoin ETFs
BlackRock holds over 3% of Bitcoin's total 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 fluctuations, and regulatory uncertainty. In the past, thin market liquidity often caused large trades to have severe impacts. As IBIT absorbs hundreds of thousands of BTC, the question is whether institutional capital will stabilize the market or further complicate it.
Supporters 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 create 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 replace the original retail-driven FOMO with another type of volatility (systemic, leverage-driven risks). Moreover, as ETF influence grows, Bitcoin may become more correlated with other financial assets, diminishing its value as a 'non-correlation hedge'.
4. Institutional Accumulation Grants Mainstream Legitimacy to Bitcoin
Undoubtedly, BlackRock's crypto strategy has pushed Bitcoin from a fringe asset to a mainstream investment tool.
For years, Bitcoin was ignored or even belittled by large financial institutions. BlackRock's deep holdings indicate a shift in attitude. The launch of IBIT (which quickly grew to become one of the largest Bitcoin holders globally) has given Bitcoin more legitimacy than any white paper or conference.
ETFs like IBIT provide a familiar, regulated investment channel, particularly suitable for institutions wary of the technical complexities or custodial risks of directly holding crypto assets. BlackRock's involvement reduces the reputational risks for other institutions, promoting Bitcoin's adoption in traditional portfolios.
Retail investors also benefit: no need to deal with wallets, mnemonic phrases, and gas fees; they can simply click to gain Bitcoin exposure through brokers.
Interesting fact: Abu Dhabi's Mubadala Sovereign Wealth Fund holds a significant stake in IBIT, with filings indicating an investment scale of approximately $409 million.
5. BlackRock Holds 3% of Bitcoin: The Centralization Paradox
Bitcoin was originally designed as an alternative to centralized finance. Yet now, when the world's largest asset management company buys over 600,000 BTC through centralized tools, a paradox emerges: decentralized assets are gradually being controlled by centralized institutions.
Today, most users rely on centralized exchanges (CEX), custodians, or ETFs. These platforms operate more conveniently, equipped 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.
Thus, even though Bitcoin remains decentralized at a technical level, most people interact with it through centralized channels. BlackRock's accumulation of Bitcoin is a typical representation of this phenomenon. Some see it as a departure from Satoshi's vision, while others view it as a necessary compromise—a 'centralization of access layers' that allows Bitcoin to truly globalize. This is at the core of the Bitcoin centralization debate: how to find a balance between ideological purity and practical adoption.
The current market seems to accept a hybrid model: decentralized underpinnings + centralized access layers.
6. The Regulatory Chase Game
BlackRock's ability to launch IBIT stems from a key decision: the SEC approved spot Bitcoin ETFs in early 2024. This broke a years-long deadlock, opening 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 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 confused. Commissioner Caroline Crenshaw has pointed out that the SEC's current stance creates 'murky waters', leading to passive enforcement and stifling innovation. This directly affects 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.
