The Financial Giant’s Rise in Bitcoin
The year 2024 marked a historic turning point for the cryptocurrency market. The US Securities and Exchange Commission (SEC) approved the first spot Bitcoin ETFs after years of debate. This paved the way for institutional investors in particular to access Bitcoin through regulated financial products. The most prominent among these ETFs is undoubtedly the iShares Bitcoin Trust (IBIT) launched by BlackRock.
The entry of BlackRock, the world’s largest asset manager, into the Bitcoin market has attracted attention not only for its large capital flows, but also for its impact on market perception. IBIT has received record inflows since its launch, adding hundreds of thousands of Bitcoins to its reserves within a few months. By mid-2025, the amount of BTC held by BlackRock exceeded 600,000. This is close to the estimated 1 million BTC held by Bitcoin founder Satoshi Nakamoto – which naturally raises questions about the principle of decentralization.
In this report, we will examine the potential effects of this massive institutional dominance on Bitcoin’s core philosophy of “decentralization”.
What is Decentralization and Why is it Important?
Decentralization is the most important element that underpins Bitcoin. No single government, company or individual can control the network. Thanks to this structure:
- It is resistant to censorship.
- It is protected from political manipulation.
- Each individual can be the bank of his or her own fund.
However, if large players control a significant portion of the supply in the market, this balance could be shaken.
Satoshi Comparison
Satoshi’s estimated 1 million BTC date from 2009-2010 and have never moved. By keeping these coins “dead”, Satoshi made the biggest contribution to decentralization. BlackRock’s BTC, on the other hand, are active, tradable and have market impact.
BlackRock’s Position and Power
BlackRock’s BTC assets are held on behalf of institutional clients and operate through an ETF structure. The company does not spend these BTC directly, but it does have the following:
- Liquidity control: Can influence the market by stabilizing inflows/outflows to and from the ETF.
- Power Can influence public opinion and perception.
Threat Scenarios
- Liquidity Pressure: Can manipulate the market by selling or buying large amounts.
- Regulatory Lobby: By supporting a “certified” version of Bitcoin, it could lead to a censored chain.
- Psychological Impact: The perception that “BTC has become the plaything of big players” may reduce individual interest.
Alternative View: This is a Transition, Not a Threat
Some analysts argue that this is not a threat but an “evolution of institutionalization”. Their reasoning:
- ETFs make Bitcoin accessible to more people.
- Institutional interest can ensure price stability in the long run.
- True decentralization is measured not only by supply, but also by nodes and miners.
Conclusion
While the Bitcoins held in BlackRock’s ETF funds technically appear to belong to BlackRock, they are actually a pool of assets shared by the fund’s investors. So the Bitcoins are not directly owned by BlackRock; the real owners behind the fund are its stakeholders. This means that BlackRock’s accumulation of Bitcoins does not create the classic situation of a single central authority controlling the entire asset.
Therefore, ownership and control remain decentralized and decentralization is not completely undermined by the structure of the fund. However, what needs to be considered here is how transparent and democratic the fund’s governance structure and decision-making processes are. In other words, while BlackRock’s holding of Bitcoin in an ETF does not constitute a direct takeover of the system, constant monitoring and regulatory interventions into the structure and functioning of these funds are necessary.
After all, Satoshi’s vision was a revolution not only in lines of code, but also in the distribution of power, decisions and ownership. Therefore, how Bitcoin’s supply is distributed becomes important for the system to remain healthy on both technical and sociological levels.
Disclaimer
This content has been prepared by the Darkex Research Team for informational purposes only. It does not constitute investment advice. All risks and responsibilities arising from your investment decisions are solely your own.
