BlackRock Shares Bullish Outlook for BTC As Its Bitcoin ETF IBIT Attracts $143M Inflows

BlackRock maintained its long-term Bitcoin investment thesis despite BTC losing roughly half its value from the October 2025 peak. The asset manager attributed the decline to deleveraging, weaker capital flows and slower digital-asset treasury demand.

Institutional positioning also showed continued interest in BlackRock’s iShares Bitcoin Trust. U.S. spot Bitcoin ETFs recorded $189.31 million in net inflows on Aug. 18, with IBIT accounting for about 76% of the total.

BlackRock Bitcoin Thesis Survives 50% Drawdown

In their latest executive summary, BlackRock said that the long-term investment thesis in Bitcoin remains unchanged. BlackRock said the Bitcoin price decline of more than 50% from its October 2025 all-time high was driven primarily by deleveraging, weaker capital flows, and slower buying from digital asset treasuries. However, as per the firm, BTC still remains a strong long-term investment case.

At the time of the decline, crypto futures open interest exceeded $90 billion, with around 80% coming from perpetual futures outside the CME. Moreover, tariff shocks triggered multiple waves of liquidations, pushing Bitcoin below $60,000 in June 2026, according to BlackRock.

BlackRock was among the early participants to bring Bitcoin ETFs to the US market in January 2024. Spot Bitcoin ETPs attracted approximately $60 billion in cumulative inflows between January 2024 and October 2025. However, it saw some major outflows of over $5 billion in the following period.

BlackRock noted that at the same time, AI-focused funds attracted more than $46 billion in inflows. They hinted at a capital rotation taking place from crypto to the AI sector. Moreover, BlackRock said that the selling by Strategy (MSTR), other digital asset treasuries, and large holders also added to market pressure.

The financial giant still believes that a small allocation to Bitcoin in the overall portfolio is the right diversification choice.

BlackRock Bitcoin ETF IBIT Remains in Demand

Over the past few months, the overall Bitcoin ETF sector has been undergoing a rough patch with weeks of outflows. However, BlackRock’s iShares Bitcoin Trust (IBIT) still continues to be in demand among institutional players.

Recently, Tudor Investment increased its stake in BlackRock’s IBIT by 18.9% to 688,529 shares, worth approximately $22.9 million as of June 30. The increase reverses a year-long selling trend that had reduced the position by 91% from its late-2024 peak.

Meanwhile, Jane Street disclosed more than $1 billion in U.S. spot Bitcoin ETF holdings as of June 30, according to SEC filings. Around $828 million of that exposure was invested in BlackRock’s IBIT.

UBS also significantly increased its exposure to IBIT options, raising its underlying call position from 80,000 to 1.95 million shares, a roughly 24-fold increase in one quarter. The Swiss bank also increased its direct IBIT holdings by 12% while cutting its put protection by 50%.

BlackRock Bitcoin ETF (IBIT) Leads $189 Million of Inflows

On Tuesday, August 18, US spot Bitcoin ETFs recorded $189.31 million in total net inflows, led by BlackRock’s IBIT, which attracted $143.57 million. BlackRock’s IBIT alone added 2,220 BTC, worth approximately $143.57 million, with trading volume reaching $1.1 billion.

Fidelity’s FBTC recorded $23.92 million in inflows, followed by ARKB with $19.73 million and BITB with $16.15 million. Grayscale’s Bitcoin Mini ETF also saw $2.86 million in inflows.

VanEck’s HODL was the only fund to record an outflow, with $16.92 million leaving the ETF. The remaining funds recorded no net flows.

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets can experience sharp price movements.