BlackRock’s Bitcoin ETF (IBIT) Now Holds Over 500K BTC
December 3, 2024
According to on-chain data, BlackRock’s iShares Bitcoin Trust (IBIT) now holds over 500,000 bitcoin. This makes BlackRock the third-largest holder of bitcoin globally, behind only the pseudonymous creator of bitcoin, Satoshi Nakamoto, and cryptocurrency exchange giant Binance.
BlackRock's influence in the cryptocurrency market is expanding rapidly with holdings estimated at around $48 billion.
BlackRock's Aggressive Bitcoin Accumulation
In just 233 trading days since IBIT’s launch, BlackRock has acquired 2.38% of all Bitcoin that will ever exist. This momentum reflects its confidence in Bitcoin as a financial asset. Its buying spree reflects this momentum, with BlackRock’s total Bitcoin holdings reaching 500,380 units as of Monday, December 2.
Most recently, the company made headlines by buying $680 million worth of bitcoin amid a buildup effort. The purchases continue to strengthen its foothold in the market. BlackRock’s shift toward bitcoin is in line with CEO Larry Fink’s shift in outlook. Fink was previously a skeptic and called bitcoin speculative, but now describes it as an “independent asset” with transformative potential.
This shift has prompted BlackRock to deepen its involvement in the cryptocurrency markets. The firm’s US head of themes and active ETFs, Jay Jacobs, recently said that Bitcoin could become a $30 trillion market. As BeInCrypto reported, he suggested there was more room for BTC adoption.
BlackRock’s flagship product, the iShares Bitcoin Trust (IBIT), is a central component of its bitcoin accumulation strategy. IBIT hit $40 billion in assets under management earlier this year, breaking records in the ETF industry. On its first day of options trading alone, the fund racked up more than $425 million in sales, indicating massive interest from institutional investors.
IBIT outperformed BlackRock’s gold fund four weeks ago, a testament to Bitcoin’s growing prominence in traditional finance (TradFi). According to data on SoSoValue, IBIT continues to lead the market in spot Bitcoin funds.
The financial instrument recorded inflows of nearly $340 million on Monday. Total net inflows reached $32.08 billion as of December 2, with Fidelity’s FBTC lagging behind at $11.48 billion.
Institutional Adoption of BTC Raises Decentralization Concerns
BlackRock’s Bitcoin strategy extends beyond ETFs. The firm has also increased its exposure to Bitcoin through investments in MicroStrategy, the largest corporate holder of Bitcoin. The move reflects BlackRock’s confidence in Bitcoin’s long-term value and its intent to dominate the institutional Bitcoin market.
The company’s initiatives, among those of other TradFi players, are undoubtedly contributing to the legitimacy of Bitcoin as an asset class. However, not everyone is celebrating.
Some in the crypto community criticize that institutional dominance runs counter to Bitcoin’s founding ethos of decentralization. With BlackRock amassing such large holdings, the company risks concentrating control in a space designed to empower individuals over institutions.
“There was a dream called Bitcoin… this isn’t it,” one user on X lamented.
To some critics, the growing institutional ownership of Bitcoin defeats the entire purpose of decentralization, with BlackRock steadily moving to become the largest holder.
However, the rise of BlackRock as a major holder of Bitcoin represents a pivotal shift in the crypto space. On the one hand, it highlights Bitcoin’s mainstream acceptance and potential as a global financial asset. On the other, it raises questions about the role of large financial institutions in a space traditionally associated with popular financial sovereignty.
With IBIT leading the field and setting the standard, the company is poised to remain a major player in the cryptocurrency industry. However, the debate over whether this benefits or undermines the core principles of Bitcoin is unlikely to subside.
