BlackRock Reaches New Heights with Bitcoin ETF

BlackRock’s iShares Bitcoin Trust (IBIT), a spot Bitcoin exchange-traded fund, has achieved a significant milestone by surpassing 700,000 BTC on July 8, 2025, reaching a staggering asset value of approximately $76 billion. Initially launched in January 2024 in the United States, IBIT managed to amass this impressive amount by adding 1,510 BTC on July 7, propelling its total holdings to 698,919 BTC within just 18 months. According to data from Bloomberg and K33, IBIT now ranks as the third highest revenue-generator among 1,197 ETFs under BlackRock’s management. NovaDius Wealth Management President Nate Geraci commented that this remarkable growth to 700,000 BTC in such a short time is “unbelievable.”

How Did IBIT Secure the Lead?

IBIT’s success can be attributed to its surpassing of Grayscale’s costly GBTC fund in asset size last year. Leveraging data from SoSoValue, the fund currently commands 56% of all US-based spot Bitcoin ETF assets. With IBIT contributing about 80% to the daily trading volume of $2.9 billion, it has notably influenced market liquidity. Its rapid rise has brought nearly 6% of the finite 21 million Bitcoin supply under institutional control through ETFs.

Why Are Inflows Pouring Into US Spot ETFs?

US spot Bitcoin ETFs have witnessed substantial inflows, gathering $1.2 billion according to CoinShares’ latest weekly report. In three trading days, these funds collectively grew to $52.9 billion, largely driven by the low-commission structures of BlackRock and Fidelity’s offerings. These influxes offset the pressure from GBTC outflows as fund managers view Bitcoin as a viable digital alternative to gold, amid newfound regulatory clarity and economic uncertainties.

Fidelity’s FBTC has also crossed the 200,000 BTC mark, overtaking the second spot from GBTC. Following its conversion to an ETF, GBTC’s holdings dwindled from 619,220 BTC to 184,226 BTC. Although GBTC experienced net outflows of $23.3 billion, other funds have seen inflows exceeding $50 billion. Consequently, the total capital directed into US spot Bitcoin ETFs has exceeded $50 billion, establishing a strong institutional presence in the digital currency market.

The renewed interest is partly due to the ETF structure, which removes the security and custody risks associated with cryptocurrency exchanges. This model also diversifies institutional portfolios, offering returns that differ from those of traditional assets. As analyst Vetle Lunde pointed out,

“IBIT’s continuous demand underscores the permanent bridge between traditional finance and the cryptocurrency world.”

• IBIT outranked Grayscale’s GBTC, positioning itself as a market leader.
• The fund holds over half of the US-based spot Bitcoin ETF assets.
• Fidelity’s FBTC product surpassed 200,000 BTC, outpacing GBTC.
• Total investments in US spot Bitcoin ETFs have exceeded $50 billion.

With significant institutional investment flooding into the market, the limited supply of Bitcoin could lead to long-term increases in its price. This situation highlights the growing intersection between traditional financial structures and emerging digital assets, potentially ushering in a new era of financial innovation.