It’s been a big quarter for BlackRock’s Shares Bitcoin Trust ETF (IBIT) with new custodians, Bitcoin volatility, a new regulatory landscape, and a pro-Bitcoin president.
In its latest quarterly filing, BlackRock reported $47.78 billion in net assets at the end of Q1 2025, a decrease from $51.52 billion in the previous quarter.
This decline tracks Bitcoin’s 11.15% price fall during the same period, affirming the ETF’s direct correlation to Bitcoin market performance.
While Bitcoin’s price retreat impacted net asset value (NAV), the Trust’s underlying demand remained intact. Share issuances outpaced redemptions by 43 million during the quarter.
The total number of outstanding shares reached 1.013 billion, reflecting sustained institutional interest despite market volatility. The NAV per share fell to $47.14 from $53.09.
The largest NAV point during Q1 was $60.61 on January 21, with the lowest at $44.62 on March 10.
However, as of press time, IBIT is trading at $56 in pre-market as Bitcoin attempts to reclaim $100,000.
Operational costs during the quarter were modest relative to asset size. Sponsor fees totaled $33.04 million. BlackRock’s promotional fee waiver for the first $5 billion in AUM at a reduced rate of 0.12% cost the Trust $178,082 during the quarter, though this concession expired in January 2025.
Changing landscape for Bitcoin ETFs
Coinbase Custody remained the Trust’s primary Bitcoin custodian. However, BlackRock expanded its custody framework in April 2025, appointing Anchorage Digital Bank under a new custodial services agreement.
The move is to add redundancy to safeguard against counterparty and operational risks, especially as Coinbase has faced regulatory challenges. Notably, the SEC’s lawsuit against Coinbase was dismissed in February 2025, which removed near-term legal uncertainty around the Trust’s key service provider.
Market structure risks also surfaced throughout the filing. BlackRock detailed that Bitcoin sold to fund share redemptions resulted in $624 million in realized gains, evidencing the Trust’s liquidity efficiency.
Nevertheless, the document extensively outlined regulatory and security vulnerabilities, including exposure to custody losses, market manipulation, and global regulatory shifts. U.S. initiatives such as President Trump’s March 2025 executive order creating a “Strategic Bitcoin Reserve” and pending congressional legislation to acquire 1 million Bitcoin over five years were noted as potential market catalysts and risks.
The Trust’s custodial and counterparty arrangements are subject to liability limitations. Insurance policies maintained by Coinbase and Anchorage may be insufficient to cover extreme loss scenarios.
Lastly, the ETF’s exposure to ongoing regulatory evolution remains central. The filing cited rising scrutiny from U.S. and global authorities, including FinCEN’s proposed rules on digital asset mixers and OFAC’s ongoing enforcement, as factors that could affect liquidity and market access.
Ultimately, IBIT’s quarterly disclosure highlights a balance between robust inflows and market-related NAV compression, while offering an extensive view into how BlackRock manages structural, regulatory, and operational risks in the digital asset landscape.
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