BlackRock’s Bitcoin ETF Draws Record Inflows During May’s Rally

2025-05-30 09:36:02

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(Bloomberg) -- BlackRock Inc.’s iShares Bitcoin Trust posted its largest-ever monthly inflow in May, as the original cryptocurrency climbed to a record while being touted by more proponents as an alternative store of value.

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The fund has attracted more than $6.35 billion in net inflows during the month, according data compiled by Bloomberg — the most since its debut in January 2024. The surge lifted total assets under management to over $71 billion, underscoring growing institutional appetite for Bitcoin amid global market turbulence.

“The surge in demand appears to come primarily from institutional investors seeking regulated exposure to Bitcoin amid economic uncertainty and inflation concerns,”said Kirill Kretov, trading automation expert at CoinPanel. “Notably, some of this demand is internal as BlackRock’s own Strategic Income Opportunities Portfolio, a diversified fixed income mutual fund, has increased its holdings of IBIT.”

Bitcoin touched a record high of $111,980 earlier this month, bolstered by supportive regulatory developments, including progress on US stablecoin legislation. The gains also come as investors grapple with escalating geopolitical and economic risks, prompting a shift away from traditional safe havens such as US Treasuries.

Markets have been on edge since President Donald Trump reintroduced reciprocal tariffs in April — a move widely perceived as a threat to global trade and economic stability. The tariffs, and the retaliation that followed from trading partners, have shaken investor confidence and stoked fears of slower global growth.

In a ruling issued late Wednesday, a three-judge panel for the US Court of International Trade declared that the Trump administration had wrongly invoked a 1977 law in imposing his “Liberation Day” tariffs on dozens of countries and they were therefore illegal. But a federal appeals court temporarily blocked the ruling on Thursday, giving the White House hope to continue its efforts to rewrite the global trading order.

Amid the uncertainty, Bitcoin’s appeal as an alternative store of value appears to be gaining ground — a trend that could further boost flows into crypto-linked investment products in the months ahead.