Bitcoin · Bitcoin ETF · Bitcoin Magazine
BlackRock released the iShares Bitcoin Trust, IBIT, in January 2024
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Less than a year later, it had accumulated more than $50 billion in assets, making it what BlackRock itself has described as the largest exchange-traded product launch in history.
Key facts
- According to current ETF holdings data tracked by Bitcoin For Corporations, U.S. spot Bitcoin ETFs collectively hold approximately 1.25 million BTC, representing nearly 6% of Bitcoin’s fixed 21
- The portfolio’s Sharpe ratio improved from 0.81 to 0.96, while maximum drawdown changed from -20.3% to -20.9%
- At 2%, approximately 190 basis points of additional annualized return came with roughly 50 basis points of additional annualized volatility in the period studied
- In BlackRock’s rolling 10-year analysis through May 29, 2026, a traditional 60/40 equity and fixed-income portfolio generated an annualized return of approximately 9.9% with annualized standard
Summary
BlackRock re-underwrites the Bitcoin thesis, finding that even modest allocations historically improved risk-adjusted returns in traditional portfolios. Bitcoin’s roughly 50% decline from its October 2025 high has created a useful test for the institutional investment thesis. That is effectively what BlackRock has done in its latest research, Re-Underwriting Bitcoin: Still a Portfolio Diversifier. The results are more consequential than the headline return figures suggest. Put differently, the 2% allocation added roughly 190 basis points of annualized return relative to the traditional portfolio while increasing annualized volatility by approximately 50 basis points.