BlackRock Bitcoin ETF Achieves Unprecedented 700,000 BTC Holdings
According to Cointelegraph, BlackRock's iShares Bitcoin Trust (IBIT) has crossed the 700,000 BTC threshold, holding 700,307 Bitcoin worth approximately $75.5 billion. The milestone came after IBIT registered a $164.6 million inflow on Monday, bringing total holdings to this historic level in just 18 months since launch.
The fund added 1,388 BTC across two trading sessions, moving from 698,919 BTC held as of Thursday. IBIT now accounts for more than 55% of total Bitcoin held in US spot Bitcoin ETFs, according to Bitbo data. Since inception in January 2024, the fund has delivered an 82.67% total return to investors.
Why This Milestone Matters for Bitcoin Markets
This achievement represents the fastest accumulation of Bitcoin by any institutional investment vehicle in history. CoinDesk reports that IBIT now generates approximately $187.2 million in annual fees through its 0.25% management fee structure. This revenue exceeds BlackRock's flagship iShares Core S&P 500 ETF, which generates $187.1 million annually despite managing nine times more assets.
The 700,000 BTC holdings exceed MicroStrategy's 600,000 Bitcoin position, despite the corporate holder's four-year head start. Other Bitcoin ETFs hold substantially smaller amounts, with Fidelity's FBTC at 203,000 Bitcoin and Grayscale's GBTC at 184,000 Bitcoin. We recently reported that Strategy launched a $2 billion zero-interest note offering to expand Bitcoin holdings, demonstrating continued institutional appetite for direct Bitcoin exposure alongside ETF products.
Combined US Bitcoin ETFs and Strategy have purchased Bitcoin worth $28.22 billion in 2025, while Bitcoin miners generated only $7.85 billion in new supply during the same period. This supply squeeze dynamic has created persistent buying pressure throughout most of 2025.
Industry Impact and Competitive Landscape Changes
BlackRock's achievement reshapes the institutional Bitcoin landscape by proving regulated investment products can accumulate massive positions rapidly. Pinnacledigest data shows spot Bitcoin ETFs worldwide had amassed over $65 billion in assets under management by April 2025, with reduced volatility encouraging pension funds and insurance companies to consider allocations.
The success positions BlackRock as the dominant player in cryptocurrency investment products, potentially influencing competitor strategies. The SEC reportedly considers simplifying crypto ETF approval processes, requiring only Form S-1 filings and 75-day waiting periods for new products. This streamlined approach could accelerate market competition beyond Bitcoin into other cryptocurrency ETFs.
IBIT's rapid growth creates concentration risks within Bitcoin ownership structures. The fund controls a substantial portion of Bitcoin's total supply through institutional holdings, potentially affecting price discovery mechanisms. Traditional financial institutions now view Bitcoin as a permanent portfolio component rather than speculative allocation, changing long-term market dynamics for the cryptocurrency sector.
