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.
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.
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.
