BlackRock, the world’s largest asset manager, has increased its bitcoin investment. The company’s Global Allocation Fund has boosted its iShares Bitcoin Trust (IBIT) holdings by 91% to $47.4 million as of January 31, 2025, according to a recent SEC filing.
BlackRock’s growing bitcoin exposure shows institutional investors are warming up to the scarce digital asset.
Over the past year, the fund has gradually increased its bitcoin ETF holdings. In April 2024, the fund held 43,000 IBIT shares. By July 2024, that number was 198,874. Between November 2024 and January 2025, BlackRock added 390,894 more shares, for a total of 821,664 IBIT shares.
The fund’s overall allocation to bitcoin is now 0.25% of its $15.8 billion portfolio, up from 0.1% in October 2024.
The move to add more shares is part of a broader trend of institutional adoption of bitcoin. BlackRock’s CEO Larry Fink has been bullish on bitcoin. As traditional finance firms explore digital assets, bitcoin is being seen as a legitimate investment.
Related: Larry Fink Praises Bitcoin at World Economic Forum, Predicts $700k
A River report shows hedge funds and registered investment advisors increased their bitcoin ETF holdings by 357% in 2024 to $34.3 billion. Institutional interest in bitcoin ETFs is helping bridge the gap between traditional finance and decentralized assets.
BlackRock’s investment could prompt other big financial institutions to follow. As more traditional asset managers increase their bitcoin exposure, demand for bitcoin will rise.
This is further proof bitcoin is a store of value and inflation hedge. When a giant like BlackRock commits to bitcoin, it means it believes in the asset long-term.
The effects are already evident. Since the SEC approved spot bitcoin ETFs in January 2024, bitcoin’s price has risen and institutional interest has grown.
Mubadala Investment, the sovereign wealth fund of Abu Dhabi, bought nearly $437 million worth of IBIT in 2024. SWIB, the State of Wisconsin Investment Board, invested $321 million in IBIT by year-end.
BlackRock is not just dipping its toes in bitcoin. Its Global Allocation Fund isn’t the only one with exposure to the asset. The firm’s Strategic Income Opportunities Fund (BSIIX) and Strategic Global Bond Fund (MAWIX) also hold shares in IBIT.
As of September 2024, BSIIX owned nearly 2.1 million IBIT shares valued at around $77 million. MAWIX maintained a much smaller 40,000 shares, worth roughly $1.4 million.
That’s not all. BlackRock also introduced IBIT to its $150 billion model portfolio this year. The target allocation there is around 1% to 2%.
This week the firm launched a European Bitcoin ETP. The investment vehicle is available for trading on Xetra, Euronext Amsterdam and Euronext Paris. These moves show just how committed BlackRock is to Bitcoin.
