BlackRock: IBIT Scale to Continue Growing, Currently Holding Over 765,000 Bitcoins

BlockBeats News, August 26th, according to Forbes report, Bitcoin has risen by about 20% in the past week, breaking above $80,000 for the first time since May. Robbie Mitchnick, Head of Digital Assets at BlackRock, stated that the size of their Bitcoin spot ETF, IBIT, "will continue to grow" as BlackRock continues to expand investor access and channels for Bitcoin allocation.

BlackRock has lowered the minimum threshold for investors to directly exchange Bitcoin for IBIT shares from $25 million to $1 million. This mechanism allows eligible investors to convert their Bitcoin holdings directly into ETF shares without needing to sell Bitcoin on the market first, potentially avoiding capital gains tax triggered by asset sales. Since its launch, IBIT has been the fastest-growing ETF at multiple scale points, currently representing investors holding over 765,000 Bitcoins worth around $60 billion.

Mitchnick mentioned that real-world risks such as ransomware, extortion, and custody failures are driving some Bitcoin holders to shift some or all of their self-custodied assets to ETFs. The recent attack on a portion of Coldcard hardware wallets has further intensified market concerns about the security of self-custody.

Data shows that the 13 U.S.-based Bitcoin spot ETFs, led by IBIT, recorded the strongest weekly inflows in nearly 10 months. Researchers at Talos stated that this week's approximately 23% Bitcoin price surge and increase in volatility are among the highest historically, and such patterns typically correspond to above-average returns in the medium term. Unlike the May rally that lacked ETF funding support and subsequently retraced, this recent surge has received structural buying support not seen before.