BlackRock is doubling down on Bitcoin, ramping up investments through its iShares Bitcoin Trust (IBIT) as investor appetite for crypto-backed funds continues to grow. The world’s largest asset manager boosted its in-house portfolio’s IBIT exposure by 25% last quarter, while also leading a record-setting week for U.S. Bitcoin ETFs.
Recent SEC filings show BlackRock’s Strategic Income Opportunities Portfolio now holds over 2.1 million IBIT shares, up from 1.6 million at the end of last year. The position is valued at $99.4 million as of March 31. This indicates that institutional players are gaining increasing confidence in Bitcoin, even among those with traditionally conservative investment strategies.
While ETFs offer regulated access to crypto for larger investors, everyday users still turn to direct alternatives to keep control of their assets. Using a non-custodial wallet remains one of the most trusted ways for individuals to hold Bitcoin without relying on third parties. Demand for crypto is building up, so many are blending the use of both ETFs and personal wallets depending on their goals.
The broader market appears to be in a risk-on mode. Bitcoin hit an all-time high of $111,970 earlier this week, and ETF inflows followed. U.S.-based spot Bitcoin ETFs raked in $2.75 billion over the past week alone, which is an almost fivefold jump from the previous week. BlackRock led the pack, adding $430.8 million in a single day and stretching its streak of daily inflows to eight straight sessions.
Despite the excitement, not all funds are benefiting. Grayscale’s GBTC saw $89 million in outflows, continuing its decline as investors flock to newer ETFs like IBIT, which offer better pricing and tracking performance. ARK 21Shares also reported significant outflows.
Institutional buying seems to be spilling into retail sentiment. Crypto investment products recorded $3.3 billion in net inflows last week, lifting year-to-date totals to a record $10.8 billion. Assets under management in the space briefly touched $187.5 billion.
But sentiment remains mixed. The Crypto Fear & Greed Index dropped from 78 to 66 in the past 24 hours, suggesting some caution as traders take profits with prices near all-time highs.
Analysts say demand from wealth management firms and major brokerage platforms is still largely untapped. If those channels begin to embrace ETFs, inflows could push even higher. Bitwise predicts Bitcoin ETF inflows could top $120 billion by year-end.
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As of now, BlackRock is leading the charge. So, whether this signals a longer-term shift in how traditional finance approaches crypto or just another wave in a volatile market remains to be seen. But for now, Bitcoin is drawing serious attention from some of the biggest players in the game.