BlackRock’s Bitcoin ETFs Become Firm’s Top Revenue Driver as IBIT Hits ~$70B

Published: 2025-11-29 20:57:03 |

BlackRock’s spot bitcoin ETFs have become the firm’s top revenue source, driven mainly by the U.S. listed IBIT (launched January 2024) and Brazil’s IBIT39. According to Cristiano Castro, BlackRock Brazil’s business development director, allocations to the bitcoin ETFs are approaching $100 billion across products. IBIT reached roughly $70 billion in assets in a record 341 days, drawing over $52 billion in net inflows in its first year and generating an estimated $245 million in annual fees as of October 2025. IBIT now holds over 3% of bitcoin’s circulating supply. BlackRock has also increased internal exposure: its Strategic Income Opportunities Portfolio raised its IBIT stake by 14%. Company growth is attributed to broad global distribution and heightened institutional interest after U.S. approval of spot bitcoin ETFs. Castro noted that outflows from retail-driven price drops are normal and ETFs offer liquidity for flow management. No comment was available from BlackRock at the time of reporting.

Bullish

BlackRock’s rapid accumulation of assets in IBIT and related bitcoin ETFs is bullish for Bitcoin and crypto markets for several reasons. First, the concentration of institutional capital — IBIT holding over 3% of circulating BTC and ~$70B in AUM — reduces available supply on exchanges and can increase upward price pressure. Second, substantial fee generation (estimated $245M annually) and internal fund allocation (Strategic Income Opportunities increasing its IBIT stake) signal firm-level confidence, likely encouraging other institutions and allocators to increase exposure. Historically, large inflows into regulated spot BTC ETFs (e.g., after U.S. approvals) correlated with multi-week to multi-month price appreciation as liquidity shifted into custody and long-term holders. Short-term market effects may include reduced volatility as ETF liquidity and institutional participation deepen markets, though retail-driven outflows can still produce periodic pullbacks — Castro noted this behavior. Long-term, persistent institutional demand and product distribution could support higher price floors and tighter spreads, improving market structure. Risks: concentrated ETF positions can amplify sell pressure if institutions unwind quickly, and macroeconomic or regulatory shocks could curb flows. Overall, given scale and sustained inflows, the net impact is likely bullish.