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iShares Bitcoin Trust (IBIT) has reached a milestone no other crypto ETF could. It now owns and controls more than 700,000 BTC. That amounts to about 3.5 percent of all Bitcoins currently in circulation. The cumulative value of the trust is about $75 billion at the current Bitcoin price.
In this article, we'll discuss why this news matters beyond the ETF's value alone. Bitcoin is now a significant part of mainstream finance, and the success of Bitcoin ETFs is a testament to that. Many other established investors will likely follow Blockrock's lead and invest in crypto in one way or another.
The Latest Inflow
IBIT logged a daily inflow of $164.64 million on July 7th. This brings them close to about $50 billion in inflow since its launch. IBIT continued to buy BTC during the price fluctuations and while it struggled to hold near $108,000, the fund made no adjustments to its strategy.
The number is impressive, but analysts also focus on the speed with which the fund has accumulated new assets. Since its founding in January 2024, the fund has accumulated approximately 39,000 BTC every month.
Goals and Limits
Many argue that IBIT will reach a threshold of 10 percent of all Bitcoins in circulation. That would require the fund to purchase as much as 2.1 million BTC. With this pace of acquisition, that goal would be achieved by 2028.
Two years is a long time in the world of crypto, and the goal can only be achieved if a few key conditions are met. For instance, if there are no slowdowns in inflow, and there's a continued demand for ETFs. At this point, it appears that such a demand will likely continue or increase; however, crypto isn't immune to market changes.
Industry Context
To put this deal in the context of the wider industry, this means that BlackRock now holds more Bitcoin than Any Other Strategy. It also holds more than the Mt. Gox estate and more than most crypto mining treasuries.
Strategy, once known as MicroStrategy, started buying Bitcoin using proceeds from stock and debt issuance. By doing so, it became one of the largest proxy companies for Bitcoin, allowing users to hold assets in it and, therefore, effectively own Bitcoin, since the company's primary function is to facilitate purchases. It holds approximately 597,325 BTC. It means BlackRock overtook it in just 18 months.
The Change in Public Outlook
Bitcoin was used in many traditional industries relatively early on. For instance, most crypto casino reviews show that casinos accept Bitcoin as a payment option. Bitcoin is widely used as a payment method in the betting industry, as it enables fast and secure transfers and offers anonymity.
For a while now, Bitcoin has been becoming a part of a much wider and more mainstream financial industry. For instance, ETFs, such as those run by BlackRock, allow investors to trade Bitcoin on the stock market using ETFs as proxies. Traditional banks and insurance companies are also accepting Bitcoin, despite being risk-averse.
Main Features of IBIT
BlackRock's iShares Bitcoin Trust is a spot Bitcoin exchange-traded product (ETP) that trades like an ETF on the Nasdaq. It holds and stores actual Bitcoin, deriving its value from the market's value. The fund charges 0.25 percent annually and began doing so after it had obtained $5 billion in assets. The fund is very liquid due to high demand for Bitcoin ETFs.
IBIT was approved by the SEC, which gave it recognition and assured many of its early investors. However, it's important to note that the SEC doesn't treat it as an investment company. This means it lacks some of the protections investors in such companies have.
Other Crypto ETFs
The second-largest Bitcoin ETF is Fidelity's Wise Origin Bitcoin Fund (FBTC), with approximately $17 billion in AUM. It charges similar fees to those of IBIT and continues to grow, albeit at a slower rate. Grayscale's Bitcoin Trust (GBTC) was one of the first crypto ETFs and now holds approximately $17 billion in assets. It charges the largest fee, approximately 1.5 percent.
The ARK 21Shares Bitcoin ETF (ARKB), managed by Cathie Wood, has over $4 billion in assets under management. Early investors are charged a fee of 0.21 percent. Bitwise's Bitcoin ETF (BITB) offers a similar size and structure, along with a 0.2 percent fee.
New and Upcoming Crypto ETFs
The success that IBIT has experienced has led to increased interest in crypto ETFs. According to experts from Cryptomaniaks, there are a few noteworthy crypto ETFs that are about to be approved by the SEC. Trump Media supports the Truth Social Crypto ETF, which will allocate 70 percent of its assets to Bitcoin, with the remaining 30 percent divided among altcoin assets.
REX‑Osprey Solana is also in the works, and it will be the first crypto ETF to feature Solana. Tuttle Capital is set to launch in July 2025, and its value is based on the value of ten altcoins.
What You Need to Know About BlackRock
BlackRock is one of the world's largest asset management companies. It was founded in 1988 and currently manages approximately $10 trillion in assets. This includes pensions, mutual funds, and ETFs.
The company also owns shareholdings in Apple, Microsoft, and JPMorgan, among other large companies. Even though BlackRock doesn't outright own these assets, it has influence over them. It plays a key role in global finance and investing.
To Sum Up
BlackRock's iShares Bitcoin Trust (IBIT) now owns over 700.000 Bitcoin. That makes it the largest holder of BTC in the world, worth about $75 billion. IBIT owns 3.5 percent of all Bitcoin in the world, and at that rate, it will own 10 percent by 2028.
At this point, IBIT holds more BTC than some of the previously most influential crypto companies, such as Strategy. The speed with which IBIT has accomplished this goal demonstrates the significant role that ETFs play in crypto finance. Several other crypto ETF funds are being reviewed by the SEC, as more investors seek to enter the crypto market.
