BlackRock’s Bitcoin ETF Gains Momentum in U.S.

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BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT) is seeing renewed interest from both institutional and retail investors as the cryptocurrency market experiences a fresh wave of momentum in 2025.

The fund, which closely tracks the price of Bitcoin, is one of the key instruments allowing mainstream investors to gain crypto exposure without the hassle of managing digital wallets or navigating high-fee exchanges. Launched following U.S. Securities and Exchange Commission (SEC) approval in early 2024, spot Bitcoin ETFs like IBIT have since become an accessible and regulated gateway into digital assets.

Bitcoin is currently trading at approximately $115,000. Analysts at several major financial firms remain optimistic. In particular, data from Boston Consulting Group revealed that institutional investors managed around $130 trillion in assets last year. If even a small portion is allocated to Bitcoin, the potential for upside remains significant.

The SEC’s approval of these ETFs has also lent further legitimacy to cryptocurrency investments. As a result, large asset managers with over $100 million in securities have begun increasing their exposure. According to recently filed Forms 13F, positions in both the iShares Bitcoin Trust and the Fidelity Wise Origin Bitcoin Fund more than doubled in the first quarter of 2025.

Institutional participation appears likely to continue, supported by a policy shift under the Trump administration. President Trump, who pledged to establish the U.S. as the “crypto capital of the world,” signed an executive order in March creating a Strategic Bitcoin Reserve. Former SEC commissioner Paul Atkins, a vocal advocate for digital assets, now leads the agency, marking a significant departure from the more restrictive approach of the previous White House.

In a recent note, Bitwise CIO Matt Hougan described Bitcoin as “the most logical starting point” for institutions, citing its size, liquidity, and name recognition.

A growing number of corporations are integrating Bitcoin into their balance sheets. Since the 2024 election, the total amount of Bitcoin held by public and private firms has climbed 85%, based on figures from Bitcoin Treasuries.

MicroStrategy, now rebranded as Strategy, remains the most prominent Bitcoin holder. But others, including Tesla, Block, Trump Media, Mara Holdings, and Semler Scientific, have also made substantial purchases.

This trend is expected to continue, driven by easier access through ETFs and an increasingly favorable regulatory climate. Many firms are taking notice of Bitcoin’s rising prominence and the increasing difficulty of ignoring an asset class now worth nearly $4 trillion.

While long-term projections remain positive, Bitcoin’s notorious volatility still warrants caution. The asset has dropped more than 20% from its peak three times in the past three years, and similar corrections are likely ahead.

That said, investors comfortable with the risks and looking for a simplified method of entering the market may find the iShares Bitcoin Trust an appealing option. It’s 0.25% expense ratio offers relatively low-cost exposure, particularly for long-term strategies.

As interest in digital assets grows and the political environment in Washington turns more crypto-friendly, BlackRock’s Bitcoin ETF is positioning itself at the center of the next institutional wave.