BlackRock quietly stockpiled 3% of Bitcoin What does this mean?

Written by: Bradley Peak  

Source: Cointelegraph  

Translated by: Shan Ouba, Jinse Finance  

1. What percentage of Bitcoin does BlackRock own?  

BlackRock’s entry into the Bitcoin market through the iShares Bitcoin Trust (IBIT) marks a new era of institutional Bitcoin accumulation.  

Since its launch on January 11, 2024, IBIT has grown at an unprecedented pace, outpacing all other ETFs. 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 represents a Bitcoin exposure of $72.4 billion—an astonishing figure by any standard.  

In comparison, the SPDR Gold Shares (GLD) took over 1,600 trading days to reach $70 billion in assets under management (AUM). IBIT achieved this milestone in just 341 days, making it the fastest-growing ETF in history. This is not only a landmark for BlackRock itself but also indicates that institutional investor interest in Bitcoin has matured.  

BlackRock’s Bitcoin holdings now exceed those of many centralized exchanges and even large corporate holders like Strategy. In terms of raw Bitcoin holdings, only Satoshi Nakamoto’s estimated 1.1 million Bitcoins surpass IBIT—and this lead is narrowing.  

If inflows continue at the current rate, 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 Bitcoin accumulation  

Did you know? Coinbase Custody (not BlackRock) holds the private keys for BTC in IBIT, storing client assets securely offline with commercial insurance coverage.  

2. Why is BlackRock making a big bet on Bitcoin in 2025?  

Behind BlackRock’s large-scale allocation lies a strategic shift: it now views Bitcoin as a legitimate component of long-term, diversified investment portfolios.  

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 the asset, improving price discovery, enhancing liquidity, and narrowing bid-ask spreads.  

In their view, Bitcoin is a long-term bet on the evolution of money and digital asset infrastructure. This stance from the world’s largest asset manager sends a strong signal to peers, shifting institutional discussions about Bitcoin from “whether to participate” to “how much to allocate.”  

The investment logic behind institutional Bitcoin accumulation  

Key factors driving BlackRock’s bullish stance on Bitcoin in 2025 include:  

- **Scarcity design**: Bitcoin has a fixed supply cap of 21 million, with issuance controlled by a halving mechanism. Its scarcity is similar to gold but backed by a digital architecture. Some estimates suggest a significant portion of existing Bitcoin has been lost or is inaccessible, making the actual circulating supply even tighter.  

- **Alternative to dollar hegemony**: Against a backdrop 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, resistant to excessive government intervention and currency manipulation.  

- **Part of digital transformation**: BlackRock sees Bitcoin as a proxy for macro trends—the shift from “offline” to “online” value systems, encompassing finance, commerce, and even intergenerational wealth transfer. They believe this trend is “supercharged” by demographics, particularly the rising influence of younger investors.  

Together, these factors give Bitcoin risk-return characteristics unmatched by traditional asset classes. BlackRock describes Bitcoin as providing “an additional source of diversification,” offering a strong argument for its inclusion in mainstream portfolios.  

BlackRock’s crypto portfolio integration  

BlackRock advocates a prudent strategy: allocating 1%–2% of Bitcoin in a traditional 60/40 stock-bond portfolio. While this may seem small, it is sufficient to impact institutional portfolios and help conservative allocators gradually accept Bitcoin.  

They also compare Bitcoin’s risk profile to highly volatile tech stocks (such as the “Magnificent Seven”) to demonstrate its place in standard investment models.  

Interestingly, the accidental byproducts (“dust”) from Bitcoin transactions within IBIT contain small amounts of other tokens. BlackRock typically stores these tokens separately or donates them to charity to avoid tax complexities.  

3. The market impact of Bitcoin ETFs  

BlackRock’s holding of over 3% of Bitcoin’s total supply through IBIT marks a turning point for Bitcoin in terms of perception, trading, and regulation.  

Bitcoin has long been known for volatility, stemming from its fixed supply, emotional market swings, and regulatory uncertainty. In the past, large transactions often caused sharp price swings due to thin market liquidity. As IBIT absorbs hundreds of thousands of BTC, the question arises: will institutional capital stabilize the market or further complicate it?  

Proponents of the ETF model argue that institutional investment helps reduce volatility. With regulated players like BlackRock participating, Bitcoin will become more liquid, transparent, and resilient to abnormal fluctuations.  

BlackRock has also explicitly stated that broader participation improves price discovery, deepens market liquidity, and ultimately fosters a more stable trading environment.  

However, critics (including some scholars) warn that large-scale institutional participation could introduce traditional market risks to Bitcoin: leveraged trading, algorithm-triggered flash crashes, and price manipulation via ETF flows.  

In other words, Bitcoin’s financialization may replace retail-driven FOMO with another form of volatility—systemic, leverage-driven risk. Moreover, as ETF influence grows, Bitcoin may correlate more strongly with other financial assets, undermining its value as an “uncorrelated hedge.”  

4. Institutional accumulation grants Bitcoin mainstream legitimacy  

Undoubtedly, BlackRock’s crypto strategy has pushed Bitcoin from a fringe asset to a mainstream investment tool.  

For years, Bitcoin was ignored or dismissed by large financial institutions. BlackRock’s substantial holdings signal a shift in attitude. The launch of IBIT (and its rapid growth as one of the world’s largest Bitcoin holders) has endowed Bitcoin with greater legitimacy than any whitepaper or conference.  

ETFs like IBIT provide a familiar, regulated investment channel—especially suitable for institutions wary of the technical complexities of direct crypto holdings or custody risks. BlackRock’s participation reduces reputational risks for other institutions, driving Bitcoin’s adoption in traditional portfolios.  

Retail investors also benefit: no need to deal with wallets, mnemonics, or gas fees—Bitcoin exposure is just a click away via brokerage accounts.  

Fun fact: Abu Dhabi’s Mubadala sovereign wealth fund holds a significant stake in IBIT, with filings showing an investment of approximately $409 million.  

5. BlackRock holds 3% of Bitcoin: the centralization paradox  

Bitcoin was originally designed as an alternative to centralized finance. Today, however, a paradox emerges as the world’s largest asset manager buys over 600,000 BTC through centralized tools: a decentralized asset is increasingly controlled by centralized institutions.  

Most users now rely on centralized exchanges (CEXs), custodians, or ETFs. These platforms offer greater convenience, security features like insurance and cold storage, and compliance with regulations (KYC, AML). In contrast, decentralized tools like DEXs or self-custody wallets have high barriers to entry, low liquidity, and lack protection.  

Thus, even though Bitcoin remains decentralized at a technical level, most people interact with it through centralized channels. BlackRock’s Bitcoin accumulation exemplifies this phenomenon. Some view this as a departure from Satoshi’s vision, while others see it as a necessary compromise—a “centralized access layer” to make Bitcoin truly global. This lies at the heart of the Bitcoin centralization debate: balancing ideological purity with practical adoption.  

The market currently seems to accept a hybrid model: a decentralized base layer + a 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 spot Bitcoin ETFs in early 2024. This broke a years-long stalemate and opened the floodgates for institutional capital. However, the broader regulatory environment remains inconsistent and even contradictory.  

One major challenge is asset classification. The SEC continues to waver on whether Ethereum (ETH) and Solana (SOL) are securities, for example. This regulatory gray area has delayed the development of staking ETFs or altcoin ETPs, confusing investors, developers, and issuers. Commissioner Caroline Crenshaw has noted that the SEC’s current stance creates “murky waters,” leading to reactive enforcement that stifles innovation. This directly impacts whether institutions dare to invest beyond Bitcoin.  

For now, Bitcoin enjoys a relatively clear regulatory path. But for the broader crypto market (e.g., Ethereum ETFs, DeFi-linked products) to mature, a more consistent, globally coordinated regulatory framework is crucial.  

Institutions are ready—but they need trustworthy rules.  

Disclaimer: The views expressed in this article are solely those of the author and do not constitute investment advice on this platform. This platform makes no guarantees regarding the accuracy, completeness, originality, or timeliness of the information in the article, nor does it assume any responsibility for losses arising from the use or reliance on such information.