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BlackRock’s move to include IBIT in its model portfolio will meet the advisor needs of crypto exposure within its investment strategy. IBIT has dominated the Bitcoin ETF market since its approval in January 2024, controlling more than 50% of its market share with approximately $56.8 billion in Bitcoin. Withdrawal of $110 million a day.
Bloomberg reported on Friday that BlackRock, the world’s largest asset issuer under $11.5 trillion control, has expanded its crypto exposure by adding BlackRock’s iShares Bitcoin Trust (IBIT) to its portfolio strategy that allows alternative investments.
According to a report citing internal documents seen in traditional news media, BlackRock allocated 1% and 2% of Bitcoin ETFs to its target allocation model portfolio, allowing Wall Street traders to explore the fund.
BlackRock expands Bitcoin exposure
To be clear, BlackRock’s model portfolio is an off-the-shelf investment strategy used by financial advisors. This bitcoin allocation is only in a small portion of BlackRock’s $150 billion model portfolio business, but new demand for IBIT is opening up.
The fund was one of the Bitcoin ETFs approved by the U.S. Securities and Exchange Commission (SEC) in January 2024 after a series of scrutiny. However, IBIT quickly attracted interest among institutional investors and consistently brought money to the crypto market.
The fund competed with Grayscale Investments GBTC, with each product fighting for dominance in the Bitcoin ETF market. However, thanks to BlackRock’s reputation and a wide list of clients, IBIT has defeated all other Bitcoin ETFs in terms of performance and adoption.
As of February 21, BlackRock’s IBIT controls more than half of the Bitcoin ETF market. Data from Blockchain Analytics company Dune shows that BlackRock holds approximately $56.8 billion worth of Bitcoin stocks, accounting for more than 50% of the market share. By comparison, all Bitcoin, including all other Bitcoin ETF publishers, holds around $112 billion.
Now, BlackRock has added the fund to its strategic portfolio. According to Bloomberg, the move comes in response to market demand. Eve Cout, head of BlackRock’s portfolio design and solutions for US wealth, said the advisors are constantly looking for exposure within their model portfolio.
Bitcoin ETFs face heavy leaks amid the volatility of the market
Meanwhile, BlackRock’s move to include Bitcoin ETFs in its model portfolio comes when the crypto ETF market is under pressure and is experiencing a major outflow amidst the market volatility.
Since last week, Bitcoin ETFs have lost a collective $3.2 billion in just eight days, marking a net inflow for just four days this month, according to data from SosoValue. This massive spill has brought the monthly net spill to $3.65 billion.
Tuesday marked a record-breaking day for the Spot Bitcoin ETF, with $1.14 billion withdrawing from the market. BlackRock’s IBIT saw its biggest day outflow of $418 million on Wednesday. However, the latest $275.8 million spill on Thursday was more gradual compared to the previous day.
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Disclaimer: Coinspeaker is committed to providing fair and transparent reporting. This article is intended to provide accurate and timely information, but should not be considered financial or investment advice. Market conditions can change quickly, so we recommend that you review your information yourself and consult with an expert before making a decision based on this content.
Chimamanda is a crypto lover and an experienced writer focusing on the dynamic world of cryptocurrency. She joined the industry in 2019 and has since become interested in emerging economies. She combines her passion for blockchain technology with a love for travel and food, bringing a fresh and engaging perspective to her work.
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