BlackRock's Bitcoin ETF nears 3% of total BTC supply as inflows spike

It might be chump change when considering BlackRock has trillions of dollars in assets under management, but it hasn't gone unnoticed that the fund manager's Bitcoin ETF's holdings are closing in on 3% of BTC's total supply.

"BlackRock is accumulating. They now hold  2.77% of the entire Bitcoin supply,"Arkham Intelligence posted to X on Friday, noting the Wall Street giant has already added another $1.2 billion worth of BTC so far this week.

On Wednesday, BlackRock's spot Bitcoin ETF, which is the world's largest in terms of assets under management, took in $643 million, its largest single-day in 13 weeks. As of Friday, the fund manager holds over 582,000 BTC, valued at nearly $56 billion.

Following the success of its U.S. spot bitcoin ETF, BlackRock also launched a BTC-based exchange-traded product in Europe last month.

While BlackRock's Bitcoin ETF's holdings are undoubtedly significant, no matter which way you slice it, its spot BTC fund accounts for only a sliver of its nearly $12 trillion in overall assets under management.

This week, Strategy Chairman Michael Saylor predicted that in ten years IBIT will become the world's biggest exchange-traded fund. Saylor's company holds about 538,000 Bitcoin worth roughly $51.4 billion.

Bitcoin was trading at $95,401.74 as of 11:52 a.m. ET on Friday, according to The Block Price Page.

According to BlackRock's U.S. Head of Equity ETFs, Jay Jacobs, who spoke to CNBC on Thursday, the uncertainty surrounding the global economy bodes well for Bitcoin, the world's largest cryptocurrency by market cap.

"If this is the trajectory of greater uncertainty around the world, things like gold and Bitcoin should continue to go up," said Jacobs. "People are looking for those assets that will behave differently."

The world economy, and markets more broadly, have experienced heightened volatility since President Donald Trump introduced sweeping tariffs targeting major trade partners like China.

BlackRock CEO's warning

Less than a month ago, BlackRock CEO Larry Fink said the U.S. could lose its status as the world's reserve currency to digital assets like Bitcoin if the nation doesn't get its debt under control and its deficits keep ballooning. 

"I'm obviously not anti-digital assets," Fink said late last month. "But two things can be true at the same time: Decentralized finance is an extraordinary innovation. It makes markets faster, cheaper, and more transparent. Yet that same innovation could undermine America's economic advantage if investors begin seeing bitcoin as a safer bet than the dollar."

Fink said in an annual letter to investors that the U.S. government's interest payments will surpass $952 billion this year, exceeding defense spending. He warned that if the situation is not rectified, by 2030, mandatory government spending and debt service will consume all federal revenue, creating a permanent deficit.