BlackRock’s Bitcoin Trust ETF (IBIT) was a massive quarter for new custodians, Bitcoin volatility, a new regulatory environment and stocks with ProBitcoin president.
In its latest quarter filing, BlackRock reported a net worth of $477.8 billion at the end of the first quarter of 2025, down from $51.52 billion in the previous quarter.
This decline tracks a 11.15% price drop in Bitcoin over the same period, confirming a direct correlation with the performance of the ETFs in the Bitcoin market.
Bitcoin price retreats affected net asset value (NAV), but the trust’s fundamental demand remained unchanged. Share issuance exceeded redemptions of 43 million times during the quarter.
The total number of shares outstanding reaches 1.013 billion, reflecting sustained institutional profits despite market volatility. NAV per NAV fell from $53.09 to $47.14.
The largest NAV point in the first quarter was $60.61 on January 21, and a minimum of $44.62 on March 10.
However, at press time, IBIT is trading at $56 in the pre-market market as Bitcoin tries to revive $100,000.
Operating costs during the quarter were modest compared to asset size. The sponsorship fee totaled $33.04 million. The concession expired in January 2025, but the BlackRock promotion fee waiver, AUM waiver, costing $178,082, at a rate of 0.12%.
Changes to Bitcoin ETF landscape
Coinbase Custody remained the leading Bitcoin custodian of the trust. However, BlackRock expanded the Custody Framework in April 2025 and appointed Anchorage Digital Bank under a new Management Services Agreement.
The move is to add redundancy to protection against counterparties and operational risks, particularly as Coinbase faces regulatory challenges. In particular, the SEC lawsuit against Coinbase was dismissed in February 2025, removing short-term legal uncertainty regarding Trust’s main service providers.
Market structure risks also emerged during filing. BlackRock detailed how Bitcoin was sold to fund stock redemptions, resulting in realised profits of $624 million, demonstrating the liquidity efficiency of the trust.
Nevertheless, the document extensively outlined regulatory and security vulnerabilities, including loss of custody, market manipulation, and exposure to global regulatory changes. US initiatives such as President Trump’s March 2025 executive order have created a “Strategic Bitcoin Reserve” and have put a Congressional Act on acquiring 1 million Bitcoin over five years.
There are limitations of liability for trust management and counterparty arrangements. Insurance contracts maintained by Coinbase and Anchorage may be insufficient to cover extreme loss scenarios.
Finally, ETF exposure to ongoing evolution of regulations remains central. The filing cited scrutiny of the rise from US and global authorities, including rules in which Fincen proposed rules for the continued enforcement of digital asset mixers and OFACs as factors that could affect liquidity and market access.
Ultimately, IBIT’s quarterly disclosure highlights the balance between robust inflows and market-related NAV compression, providing an extensive view of how BlackRock manages structural, adjustment, and operational risks in the digital asset context.
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