Tech • IA • Crypto
Why Institutions Are Rushing Massively Into Bitcoin
8/10TL;DR
BlackRock shifted from dismissing Bitcoin in 2017 to becoming one of its largest institutional holders by 2026, reflecting a broader strategic embrace of the asset by global finance.
KEY POINTS
From skepticism to massive exposure
In 2017, Larry Fink, CEO of BlackRock, publicly dismissed Bitcoin as a tool for money laundering. At the time, the firm avoided any involvement with cryptocurrencies. By 2026, that stance had reversed dramatically, with BlackRock holding over 817,000 bitcoins on behalf of clients through regulated investment products.
Launch of the IBIT ETF
The turning point came in January 2024, when BlackRock launched the iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF approved by U.S. regulators. This product allows investors to gain exposure to Bitcoin without directly holding it. Within 16 months, IBIT became the fastest-growing ETF in financial history, amassing roughly $67 billion in assets.
Institutional accumulation accelerates
BlackRock has continued to accumulate Bitcoin aggressively. In May 2026 alone, the firm added approximately 8,000 BTC, including a single-day inflow of $134 million. This pace highlights sustained institutional demand rather than short-term speculation.
Parallel strategy by corporate players
Alongside BlackRock, Strategy (formerly MicroStrategy) has pursued an even more aggressive approach. Since 2020, the company has converted much of its treasury into Bitcoin. By 2026, it held around 843,000 BTC, including a 34,000 BTC purchase in April 2026.
Concentration of holdings
Combined, BlackRock and Strategy control about 1.6 million bitcoins, representing roughly 9% of the total circulating supply of approximately 19.8 million BTC. This concentration underscores the growing role of large institutions in the crypto market.
Scarcity as a core driver
Bitcoin’s fixed supply cap of 21 million units is a central factor in its appeal. Unlike fiat currencies, which can be expanded by central banks, Bitcoin issuance is programmatically limited. The April 2024 halving reduced monthly production from 27,000 to 13,500 BTC, tightening supply further.
Decentralization and counterparty risk
Bitcoin operates without a central authority, distinguishing it from traditional assets tied to governments, banks, or corporate leadership. This feature has gained attention following financial instability events such as the collapse of Silicon Valley Bank and the emergency takeover of Credit Suisse in 2023.
Long-term strategic framing
In 2026, Larry Fink compared Bitcoin’s current stage to the internet in the mid-1990s, suggesting it remains early in its adoption curve. He also indicated that allocations of up to 28% in crypto assets could be considered within diversified institutional portfolios.
Retail-investor disconnect
Despite growing institutional adoption, retail investors in markets such as France remain largely underexposed, often favoring low-yield savings products. Meanwhile, large asset managers and pension funds are increasing allocations to Bitcoin and related assets.
Risks remain significant
Bitcoin’s volatility persists, with price swings of 7% in a week and historical drawdowns of up to 85%. Regulatory uncertainty also remains a factor, as future political shifts could alter the legal environment. Additionally, Bitcoin’s use as a daily payment method is still limited.
CONCLUSION
The rapid shift by major financial institutions toward Bitcoin signals a structural change in global asset allocation, even as volatility and regulatory uncertainty continue to shape its future trajectory.