BlackRock’s iShares Bitcoin Trust (IBIT) ETF was launched as one of the 11 spot Bitcoin ETFs approved by the SEC in January 2024. Since then, it has grown rapidly, surpassing $72 billion in net assets, securing the top spot in its category. Its closest competitor, Fidelity’s Wise Origin Bitcoin Fund (FBTC), trails by nearly $50 billion.
According to the latest SEC filings, the BlackRock Strategic Income Opportunities Portfolio increased its holdings of IBIT shares from 1,691,143 as of December 31, 2024, to 2,123,592 as of March 31, 2025. This represents a quarterly increase of approximately 25%. Internal model portfolios reportedly allocated between 1% and 2% to IBIT, clearly indicating that Bitcoin is now accepted as an alternative asset class among institutional investors.
Moreover, the IBIT fund has recorded remarkable inflows in recent months amid growing investor demand. In just two days, it received $1.5 billion in net inflows. Since April 9, the fund has seen daily inflows, with some days exceeding $500 million. These figures confirm that demand for Bitcoin ETFs remains strong and institutionally driven.
New Steps Deepening Bitcoin Strategy
BlackRock hasn't just invested in its own ETF; it has also diversified exposure through other Bitcoin-focused products:
- 70,971 shares in Fidelity’s FBTC fund
- 200 shares in Grayscale’s GBTC and 40 shares in its mini version
This move illustrates BlackRock’s effort to diversify indirect exposure to Bitcoin.
Furthermore, BlackRock’s interest in Bitcoin extends beyond ETFs. The firm has acquired over 620,000 Class A shares of MicroStrategy, along with nearly 15 million shares via two separate MicroStrategy convertible notes. The total value of this investment exceeds $4.23 billion. Investments in Bitcoin mining companies Riot Platforms and MARA Holdings are also part of this broader strategy.
BlackRock’s Global Allocation Fund also increased its exposure to the IBIT fund by 91%, reaching a total of $47.4 million. This indicates that the overall strategy is not limited to specific funds but part of a broader asset allocation plan.
Institutional Inflows Continue
BlackRock’s moves underscore how Bitcoin has cemented its place in traditional portfolios, signaling that institutional investors are entering a phase of more aggressive positioning. Investments via IBIT, allocations in model portfolios, and large-scale strategic purchases point to strong institutional demand for Bitcoin throughout 2025. Some managers, like Bitwise, forecast that this demand could reach $300 billion by 2026.
