Original Article Title: BlackRock quietly accumulated 3% of all Bitcoin. Here’s what that means
Original Article Author: Bradley Peak, Cointelegraph
Original Article Translation: Shanooba, Golden Finance
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's growth has been unprecedented, surpassing all other ETFs. As of June 10, 2025, BlackRock holds over 662,500 Bitcoin, representing over 3% of the total Bitcoin supply. At current prices, this is equivalent to a $724 billion Bitcoin exposure, a staggering figure by any measure.
For comparison, SPDR Gold Shares (GLD) took over 1600 trading days to reach $700 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 investor interest in Bitcoin is maturing.
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, estimated to hold 1.1 million Bitcoin, surpasses 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 have a significant impact on Bitcoin's supply distribution and ownership concentration.
Did You Know? Coinbase Custody (not BlackRock) holds the private keys to the BTC in IBIT, securely storing client assets offline and backed by commercial insurance.
Behind BlackRock's large-scale allocation is a shift in its strategic perspective: it now sees Bitcoin as a legitimate part of a long-term, diversified investment portfolio.
BlackRock's internal argument is: embracing 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 currency and digital asset infrastructure. This idea from the world's largest asset management company sends a strong signal to peers. It shifts institutional discussions about Bitcoin from "whether to participate" to "how much to allocate."
BlackRock is bullish on Bitcoin for several key reasons by 2025:
· Scarce Design: Bitcoin has a total supply cap of 21 million coins, and issuance is controlled through a halving mechanism. Its scarcity is similar to gold but backed by a digital architecture. Some estimates indicate that a significant amount of existing Bitcoin is lost or inaccessible, making the actual circulating supply even more scarce.
· Dollar Hegemony Alternative: Against the backdrop of sovereign debt inflation and geopolitical fragmentation, Bitcoin's decentralized nature offers a hedge against fiat currency risk. It is positioned as a neutral reserve asset, resisting government overreach and currency manipulation.
· Part of the Digital Transformation: BlackRock sees Bitcoin as a proxy indicator of a macro trend—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 changes, with a "supercharged" effect, particularly the rising influence of young investors.
These factors combined give Bitcoin risk-return characteristics that traditional asset classes cannot replicate. BlackRock's narrative is: Bitcoin offers an "additional source of diversification," providing a strong argument for its integration into mainstream investment portfolios.
BlackRock advocates for a prudent approach: allocating 1% to 2% of Bitcoin in a traditional 60/40 stock-bond portfolio. While this percentage may sound small, for institutional-grade portfolios, it is enough to make an impact and gradually convince conservative allocators to embrace Bitcoin.
They also compare Bitcoin's risk profile to high-volatility tech stocks (such as the "Big Seven") to demonstrate its reasonable position in a standard investment framework.
Interestingly, in the IBIT internal Bitcoin transaction process, an unexpected byproduct ("dust") is generated, which includes small amounts of other tokens. BlackRock usually stores these tokens separately or donates them to charities to avoid tax complexities.
BlackRock holds over 3% of the total Bitcoin supply through IBIT, marking a turning point for Bitcoin in terms of awareness, trading, and regulation.
Bitcoin has always been known for its volatility, stemming from fixed supply, emotional swings, and regulatory uncertainty. In the past, due to thin market liquidity, large transactions often caused drastic impacts. With IBIT absorbing hundreds of thousands of BTC, the question is whether institutional capital will stabilize the market or further complexify it.
Supporters of the ETF model believe that institutional investment helps reduce volatility. With regulated entities like BlackRock involved, Bitcoin is expected to become more liquid, transparent, and resilient to extreme 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 involvement will bring traditional market risks to Bitcoin: such as leveraged trading, algorithm-triggered flash crashes, and price manipulation through ETF flows.
In other words, Bitcoin's financialization may replace retail-driven FOMO with a different kind of volatility (systemic, leverage-driven risk). Moreover, as ETF influence grows, Bitcoin may become more correlated with other financial assets, weakening its value as a "non-correlated hedge."
Undoubtedly, BlackRock's crypto strategy has shifted Bitcoin from a fringe asset to a mainstream investment tool.
Over the years, Bitcoin has been ignored or even disparaged by large financial institutions. BlackRock's deep-pocketed position indicates a significant attitude shift. The launch of IBIT (and its rapid rise as one of the world's largest Bitcoin holders) has granted Bitcoin more legitimacy than any whitepaper or conference.
ETFs like IBIT provide a familiar, regulated investment channel, particularly suitable for institutions skeptical of the technical complexity or custody risks of directly holding crypto assets. BlackRock's involvement has reduced reputational risks for other institutions, driving Bitcoin's adoption in traditional investment portfolios.
Retail Investors also Benefit: They don't need to deal with wallets, mnemonic phrases, and Gas fees. They just need to click through their broker to get Bitcoin exposure.
Fun Fact: Abu Dhabi's Mubadala Sovereign Wealth Fund holds a significant stake in IBIT, with regulatory filings showing its investment size to be around $409 million.
Bitcoin was originally designed as an alternative to centralized finance. However, today, the paradox arises as the world's largest asset management company acquires over 600,000 BTC using centralized tools: a decentralized asset is gradually being controlled by centralized institutions.
Nowadays, most users rely on centralized exchanges (CEXs), custodians, or ETFs. These platforms offer more convenience, security features such as insurance and cold storage, and compliance with regulations (KYC, AML). In contrast, decentralized tools such as DEXes or self-custody wallets face challenges such as high entry barriers, low liquidity, and lack of protection.
Therefore, even though Bitcoin remains decentralized at a technical level, most people interact with it through centralized channels. BlackRock's accumulation of Bitcoin is a prime example of this phenomenon. Some see this as a deviation from Satoshi Nakamoto's vision, while others view it as a necessary compromise—a form of "centralization of the access layer" to truly globalize Bitcoin. This is at the core of the Bitcoin centralization debate: finding a balance between ideological purity and real-world adoption.
The current market seems to have accepted a hybrid model: a decentralized base layer + a centralized access layer.
BlackRock's ability to launch IBIT stemmed from a pivotal decision: the U.S. Securities and Exchange Commission (SEC) approving a physically-backed Bitcoin ETF in early 2024. This breakthrough ended years of deadlock, opening the floodgates to institutional funds. However, the broader regulatory landscape remains inconsistent, and at times, contradictory.
One of the biggest challenges is asset classification. The SEC is still wavering, for instance, 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 a state of confusion. Commissioner Caroline Crenshaw has pointed out that the SEC's current stance has created a "murky waterway," fostering 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.
The institutions are ready — but they need trusted rules.
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