In a move signaling growing institutional confidence in Bitcoin, BlackRock's iShares Bitcoin Trust (IBIT), from the world's largest asset manager, has amassed a staggering portion of the cryptocurrency's supply. The ETF now holds over 3.25% of the total BTC supply, with its assets under management (AUM) nearing $70 billion.
This significant milestone was reached less than a year and a half after US spot Bitcoin ETFs began trading on January 11, 2024. The speed at which IBIT has accumulated such a large position is unprecedented, making it the fastest-growing ETF in history. For comparison, it took SPDR Gold Shares (GLD) over 1,600 trading days to reach $70 billion in AUM, a feat IBIT accomplished in just 341 days.
BlackRock's aggressive accumulation strategy highlights a strategic shift in how traditional finance giants view Bitcoin. They no longer see it as merely a speculative bet but as a legitimate component of long-term, diversified portfolios. IBIT's holding, which now eclipses the holdings of many centralized exchanges and major corporate holders, positions the ETF as the second-largest holder of Bitcoin, trailing only its pseudonymous creator, Satoshi Nakamoto.
Bitcoin's total supply is hard-capped at 21 million coins, a core feature embedded in its code to ensure scarcity. Currently, approximately 19.88 million BTC are in circulation, with the final Bitcoin expected to be mined around the year 2140. BlackRock's significant stake, which represents over 54.7% of the market share of all US spot Bitcoin ETFs, demonstrates its dominance in the market.
This development not only validates Bitcoin as a serious asset class but also alters market dynamics. The influx of institutional capital through vehicles like IBIT could potentially lead to greater price stability and reduced volatility in the long run. As giants like BlackRock continue to accumulate, they are not just buying Bitcoin; they are signaling a profound shift in how the traditional financial world views and interacts with digital assets.