IBIT Net Assets Soar 71% to $87.9B on Bitcoin Rally, In-Kind Redemptions

TL;DR

IBIT is absolutely crushing it, with net assets up 71% to $87.9 billion, making it a must-watch for crypto exposure.

AI Summary

The iShares Bitcoin Trust ETF (IBIT) reported a significant increase in net assets, reaching $87.94 billion as of September 30, 2025, up from $51.52 billion at December 31, 2024. This 70.69% growth was primarily driven by a substantial net increase in net assets from operations of $12.69 billion for the nine months ended September 30, 2025, compared to $1.80 billion for the same period in 2024. The Trust also saw robust capital share transactions, with contributions for shares issued totaling $27.65 billion and distributions for shares redeemed amounting to $5.57 billion for the nine months ended September 30, 2025. The fair value of its bitcoin holdings surged to $87.95 billion from $51.53 billion, reflecting a net change in unrealized appreciation of $11.46 billion. A key business change was the SEC's approval on July 29, 2025, for in-kind creations and redemptions by authorized participants, which became effective July 31, 2025. Risks include the reliance on the CME CF Bitcoin Reference Rate – New York Variant for valuation and the potential for adverse effects if a Fair Value Event occurs, requiring temporary fair valuation. The strategic outlook remains focused on reflecting the performance of bitcoin's price.

Why It Matters

This substantial growth in IBIT's net assets to nearly $88 billion underscores the increasing institutional and retail adoption of spot Bitcoin ETFs, signaling a maturing cryptocurrency market. For investors, the shift to in-kind creations and redemptions, approved by the SEC on July 29, 2025, could enhance arbitrage efficiency and potentially reduce premium/discount volatility, making IBIT a more attractive and liquid investment vehicle. This move also intensifies competitive pressure on other crypto investment products, forcing them to adapt or risk losing market share. The broader market impact includes further legitimization of Bitcoin as an asset class, potentially drawing more traditional financial players and capital into the digital asset ecosystem.

Risk Assessment

Risk Level: medium — The Trust's risk level is medium due to its sole reliance on bitcoin, a highly volatile asset, and the potential for 'Fair Value Events' where the CME CF Bitcoin Reference Rate may be deemed unreliable, leading to temporary fair valuation. For example, the net change in unrealized appreciation/depreciation was a gain of $11.46 billion for the nine months ended September 30, 2025, but a loss of $7.06 billion for the three months ended March 31, 2025, highlighting significant price fluctuations.

Analyst Insight

Investors should consider IBIT for diversified exposure to Bitcoin, especially given the enhanced liquidity and arbitrage efficiency from the new in-kind creation/redemption mechanism. However, they must remain vigilant about Bitcoin's inherent price volatility and the potential for valuation discrepancies during 'Fair Value Events'.

Financial Highlights

debt To Equity

N/A

revenue

$12.69B

operating Margin

N/A

total Assets

$88.05B

total Debt

$0.11B

net Income

$12.69B

eps

$11.13

gross Margin

N/A

cash Position

$40.63K

revenue Growth

+604.8%

Revenue Breakdown

Key Numbers

• $87.94B — Net Assets (Increased from $51.52B at Dec 31, 2024, a 70.69% increase)
• $12.69B — Net increase in net assets from operations (For the nine months ended Sep 30, 2025, up from $1.80B in 2024)
• $11.46B — Net change in unrealized appreciation/depreciation (For the nine months ended Sep 30, 2025)
• $27.65B — Contributions for Shares issued (For the nine months ended Sep 30, 2025)
• $5.57B — Payments for Shares redeemed (For the nine months ended Sep 30, 2025)
• 1,356,440,000 — Shares issued and outstanding (As of September 30, 2025, up from 970,440,000 at Dec 31, 2024)
• $64.83 — Net asset value per Share (As of September 30, 2025, up from $53.09 at Dec 31, 2024)
• 770,011 — Quantity of Bitcoin held (As of September 30, 2025, up from 551,918 at Dec 31, 2024)
• $125.03M — Sponsor's fees (For the nine months ended Sep 30, 2025)
• July 29, 2025 — SEC approval date (For in-kind creations and redemptions)

Key Players & Entities

• iShares Bitcoin Trust ETF (company) — Registrant
• BlackRock Fund Advisors (company) — Trustee
• iShares Delaware Trust Sponsor LLC (company) — Sponsor
• The Bank of New York Mellon (company) — Trust Administrator
• Wilmington Trust, National Association (company) — Delaware Trustee
• Coinbase Custody Trust Company, LLC (company) — Bitcoin Custodian
• Anchorage Digital Bank N.A. (company) — Additional Bitcoin Custodian
• Securities and Exchange Commission (regulator) — Approved in-kind creations/redemptions
• The Nasdaq Stock Market LLC (company) — Exchange where Shares are listed
• CME CF Bitcoin Reference Rate – New York Variant (company) — Index for Bitcoin valuation

FAQ

Risk Factors

• Reliance on Bitcoin Reference Rate [medium — market]: The Trust relies on the CME CF Bitcoin Reference Rate – New York Variant for the valuation of its bitcoin holdings. Any disruption or inaccuracy in this benchmark rate could adversely affect the Trust's ability to accurately value its assets.
• Fair Value Event Risk [medium — market]: In the event of a 'Fair Value Event,' the Trust may be required to temporarily use a fair valuation method for its bitcoin holdings. This could lead to a discrepancy between the fair value and the value determined by the CME CF Bitcoin Reference Rate, potentially impacting investor confidence and trading.
• Custody of Bitcoin [high — operational]: The Trust's bitcoin is held by a qualified custodian. Risks associated with the custodian, such as operational failures or security breaches, could lead to the loss of the Trust's bitcoin holdings.
• Evolving Regulatory Landscape [high — regulatory]: The regulatory environment for digital assets, including bitcoin ETFs, is still evolving. Changes in regulations could impact the Trust's operations, the value of its holdings, or its ability to continue offering shares.

Industry Context

The digital asset ETF market is rapidly evolving, with increasing institutional adoption and regulatory scrutiny. Bitcoin ETFs, in particular, have seen significant inflows, driven by investor demand for regulated exposure to cryptocurrency. Competition is intensifying as more asset managers seek to launch similar products, necessitating efficient operations and strong investor trust.

Regulatory Implications

The SEC's approval of in-kind creations and redemptions for IBIT is a significant development, aligning it with other major commodity ETFs. However, the broader regulatory landscape for digital assets remains dynamic, posing ongoing compliance challenges and potential risks for the Trust and its investors.

What Investors Should Do

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Key Dates

• 2025-07-29: SEC approval for in-kind creations and redemptions — This regulatory approval allows for more efficient creation and redemption of ETF shares by authorized participants, potentially reducing tracking error and improving liquidity.
• 2025-07-31: In-kind creations and redemptions effective — Marks the operational commencement of the in-kind mechanism, enabling direct exchange of bitcoin for ETF shares and vice versa.
• 2024-01-10: Registration statement declared effective by SEC — This date signifies the official launch of the Trust's public offering.
• 2024-01-11: Shares listed on NASDAQ — The Trust's shares began trading on a major stock exchange, providing accessibility for investors.

Glossary

Net Assets

The total value of an ETF's assets minus its liabilities. For IBIT, this represents the value of its bitcoin holdings minus expenses. (A primary indicator of the ETF's size and value, showing significant growth for IBIT.)

Net increase in net assets from operations

The profit or loss generated by the ETF's activities over a period, including investment gains/losses and expenses. (Demonstrates the operational performance of IBIT, with substantial growth in the nine months ended Sep 30, 2025.)

Shares issued and outstanding

The total number of shares of the ETF that have been issued and are currently held by investors. (Indicates investor demand and the scale of the ETF, showing a significant increase for IBIT.)

Net asset value per Share (NAV)

The value of one share of the ETF, calculated by dividing the total net assets by the number of shares outstanding. (Represents the per-share market value of the Trust's holdings, which has increased substantially.)

In-kind creations and redemptions

A process where authorized participants can create or redeem ETF shares by exchanging the underlying assets (in this case, bitcoin) directly, rather than using cash. (A key operational change for IBIT, approved in July 2025, which can enhance efficiency and reduce costs.)

Fair Value Event

A situation where the primary benchmark for valuing an asset becomes unreliable or unavailable, requiring the use of an alternative fair valuation method. (A potential risk for IBIT, as it could affect the accurate valuation of its bitcoin holdings.)

Year-Over-Year Comparison

Compared to the prior period ending December 31, 2024, IBIT has experienced explosive growth. Net assets surged by 70.69% to $87.94 billion, driven by a remarkable 604.8% increase in net assets from operations to $12.69 billion. The number of shares outstanding also grew significantly by 39.8%, from 970.44 million to 1.36 billion, indicating strong investor inflows. The net asset value per share rose from $53.09 to $64.83. A key development is the SEC's approval and subsequent implementation of in-kind creations and redemptions, a change not present in the prior filing period.

Key Financial Figures

• $62,337,415,997 — (a) Cost of investment in bitcoin: $62,337,415,997 and $37,372,942,571, respectively. (b)
• $37,372,942,571 — estment in bitcoin: $62,337,415,997 and $37,372,942,571, respectively. (b) No par value, unl
• $462,736,525 — ding during the period. (b) Includes $462,736,525 of realized gains and $(3,429,058) of r
• $2,603,378 — 58) of realized losses. (c) Includes $2,603,378 of realized gains and $(3,252,255) of r
• $1,465,817,600 — 55) of realized losses. (d) Includes $1,465,817,600 of realized gains and $(111,599,097) of
• $7,965,631 — 97) of realized losses. (e) Includes $7,965,631 of realized gains and $(6,286,490) of r

Filing Documents

• bit20250930_10q.htm (10-Q) — 696KB
• ex_854386.htm (EX-31.1) — 13KB
• ex_854387.htm (EX-31.2) — 13KB
• ex_854388.htm (EX-32.1) — 5KB
• ex_854389.htm (EX-32.2) — 5KB
• 0001437749-25-033435.txt ( ) — 3192KB
• ibit-20250930.xsd (EX-101.SCH) — 32KB
• ibit-20250930_cal.xml (EX-101.CAL) — 18KB
• ibit-20250930_def.xml (EX-101.DEF) — 140KB
• ibit-20250930_lab.xml (EX-101.LAB) — 146KB
• ibit-20250930_pre.xml (EX-101.PRE) — 166KB
• bit20250930_10q_htm.xml (XML) — 537KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Statements of Assets and Liabilities at September 30, 2025 and December 31, 2024 1 Statements of Operations for the three and nine months ended September 30, 2025 and 2024 2 Statements of Changes in Net Assets for the three, six and nine months ended September 30, 2025 and 2024 3 Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 5 Schedules of Investments at September 30, 2025 and December 31, 2024 6

Notes to Financial Statements

Notes to Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 12 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 13 Item 4.

Controls and Procedures

Controls and Procedures 13

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 14 Item 1A.

Risk Factors

Risk Factors 14 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 27

SIGNATURES

SIGNATURES 28 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements iShares Bitcoin Trust ETF Statements of Assets and Liabilities (Unaudited) At September 30, 2025 and December 31, 2024 September 30, 2025 December 31, 2024 Assets Investment in bitcoin, at fair value (a) $ 87,952,924,873 $ 51,530,013,513 Cash 40,632 126,735 Receivable for investments sold — 23,451,063 Receivable for capital shares sold 95,866,968 — Total Assets 88,048,832,473 51,553,591,311 Liabilities Sponsor's fees payable 17,592,399 10,574,324 Payable for investments purchased 95,864,606 — Payable for capital shares redeemed — 23,450,440 Total Liabilities 113,457,005 34,024,764 Commitments and contingent liabilities (Note 6) — — Net Assets $ 87,935,375,468 $ 51,519,566,547 Shares issued and outstanding (b) 1,356,440,000 970,440,000 Net asset value per Share (Note 2C) $ 64.83 $ 53.09 (a) Cost of investment in bitcoin: $62,337,415,997 and $37,372,942,571, respectively. (b) No par value, unlimited amount authorized. See notes to financial statements. 1 Table of Contents iShares Bitcoin Trust ETF Statements of Operations (Unaudited) For the three and nine months ended September 30, 2025 and 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Expenses Sponsor's fees $ 53,295,322 $ 13,122,598 $ 125,025,817 $ 28,844,181 Sponsor's fees waived — ( 1,633,880 ) ( 178,082 ) ( 4,324,550 ) Total expenses 53,295,322 11,488,718 124,847,735 24,519,631 Net investment loss ( 53,295,322 ) ( 11,488,718 ) ( 124,847,735 ) ( 24,519,631 ) Net Realized and Unrealized Gain (Loss) Net realized gain (loss) from: Bitcoin sold to pay expenses 14,927,710 ( 562,447 ) 31,055,787 892,683 Bitcoin sold for the redemption of Shares 444,379,757 ( 86,430 ) 1,323,162,716 786,458 Net realized gain (loss) 459,307,467 (b) ( 648,877 ) (c) 1,354,218,503 (d) 1,679,141 (e) Net change in unrealized appreciation/depreciation 4,271

Notes to Financial Statements (Unaudited)

Notes to Financial Statements (Unaudited) September 30, 2025 1 - Organization The iShares Bitcoin Trust ETF (the "Trust") was organized on June 8, 2023 as a Delaware statutory trust. The trustee is BlackRock Fund Advisors (the "Trustee"), which is responsible for the day-to-day administration of the Trust. The Trust's sponsor is iShares Delaware Trust Sponsor LLC, a Delaware limited liability company (the "Sponsor"). The Bank of New York Mellon serves as the "Trust Administrator." The Trust is governed by the provisions of the Third Amended and Restated Trust Agreement (the "Trust Agreement") executed by the Sponsor, the Trustee and Wilmington Trust, National Association, a national association ("Delaware Trustee"), as of June 27, 2025. The Trust issues units of beneficial interest ("Shares") representing fractional undivided beneficial interests in its net assets. On January 5, 2024, BlackRock Financial Management, Inc. (the "Seed Capital Investor") redeemed 4,000 Shares for $ 100,000 ($ 25.00 per share) (the "Seed Shares") for cash and the Seed Capital Investor purchased 400,000 Shares at a per-Share price of $ 25.00 (the "Seed Creation Baskets"). Total proceeds to the Trust from the sale of the Seed Creation Baskets were $ 10,000,000 . The Seed Capital Investor is an affiliate of the Sponsor. The Sponsor's fee started accruing daily at an annualized rate equal to 0.25 % of the net asset value of the Trust on January 5, 2024. The Trust's registration statement on Form S- 1 relating to its continuous public offering of Shares was declared effective by the Securities and Exchange Commission ("SEC") on January 10, 2024 ( Effective Date) and the Shares were listed on The Nasdaq Stock Market LLC ("NASDAQ") on January 11, 2024. On July 29, 2025, the SEC issued 19b - 4 orders permitting in-kind creations and redemptions by authorized participants for the Trust. On July 31, 2025, the amendment to the Trust's registration statement on Form S- 1 was declared ef