BlackRock’s Rapid Ascent: IBIT ETF Now Holds 700,000 Bitcoin

BlackRock’s aggressive push into digital assets has reached a striking new milestone, with its iShares Bitcoin Trust (IBIT) now holding over 700,000 Bitcoin (BTC)—roughly 3.5% of the total global supply. In just a year and a half, IBIT has become a dominant force in crypto finance, sparking both enthusiasm from investors and growing concern about the centralization of Bitcoin’s ownership.

Launched in January 2024, the IBIT exchange-traded fund (ETF) has grown faster than any similar product in financial history. It now controls over $80 billion in assets under management (AUM), according to financial analysts tracking ETF inflows. BlackRock’s market share in the U.S. The Bitcoin ETF space has surpassed 55%, leaving competitors scrambling to keep up. On some trading days, IBIT alone accounts for more than $5 billion in trading volume.

This explosive growth highlights the rising appetite for institutional-grade exposure to Bitcoin, particularly among risk-averse investors who prefer regulated platforms over self-custody wallets. The IBIT ETF offers investors the ability to gain exposure to BTC without managing private keys or dealing with crypto exchanges—factors that have historically kept many traditional players out of the market.

However, the concentration of such a significant portion of Bitcoin’s supply in the hands of one financial giant raises fundamental questions. Bitcoin was built on principles of decentralization and individual sovereignty. With BlackRock now positioned as one of the largest Bitcoin holders—potentially rivaling the mysterious creator Satoshi Nakamoto—some critics warn that Bitcoin’s original ethos is being diluted by Wall Street consolidation.

From a center-right policy lens, the rise of IBIT reflects a positive trend toward private-sector innovation and market-led adoption of digital assets. Yet it also exposes a potential systemic risk. Should BlackRock need to rapidly liquidate holdings or rebalance the ETF, the impact on global crypto markets could be severe. Furthermore, the growing institutional presence may invite increased regulatory scrutiny and political intervention—outcomes that rarely benefit retail investors or long-term innovation.

Australia and other Western economies should study IBIT’s rapid ascent closely. If Bitcoin is to remain a viable hedge and financial instrument, national frameworks must strike a balance between open market access and safeguards against monopoly-like accumulation. As digital assets continue to blur the lines between finance and technology, the question is not whether institutions like BlackRock will shape the future of crypto—but whether the rest of the world is ready for it.