BlackRock’s Bitcoin ETF Nears $70B as Institutional Interest Builds

BlackRock’s spot Bitcoin ETF has surged in popularity, closing in on $70 billion in assets under management and reinforcing the growing dominance of institutional investors in the crypto market. As of the latest data, the iShares Bitcoin Trust (IBIT) has accumulated $69.7 billion in Bitcoin, representing more than 3.25% of the entire circulating BTC supply. The fund now holds over 54.7% of the U.S. spot Bitcoin ETF market share, which collectively manages 6.12% of all existing Bitcoin, according to Dune Analytics. Institutional Players Cement Their Presence IBIT’s rapid rise has come just 18 months after the debut of U.S. spot Bitcoin ETFs on January 11, 2024. The milestone indicates that large financial institutions are playing an increasingly influential role in Bitcoin’s market dynamics. “Large institutions like BlackRock are a big part of the price action, and supply scarcity is an important driver right now,” said Emmanuel Cardozo, market analyst at Brickken. He added that institutional accumulation tends to ramp up following periods of geopolitical uncertainty, a pattern seen in past Bitcoin cycles. Sustained Inflows and Record ETF Positioning The ETF market has seen eight straight days of net positive inflows, with U.S. Bitcoin ETFs drawing in $388 million on Wednesday alone, according to Farside Investors. That trend reflects consistent demand even as retail interest appears to cool. BlackRock’s IBIT fund has now become the 23rd largest ETF in the world, surpassing many traditional finance products in terms of assets under management, based on data from VettaFi. Despite these achievements, some analysts caution that investor sentiment may need another catalyst to drive prices substantially higher. According to Nexo’s Iliya Kalchev, “A breakout may need a new catalyst or sentiment shift.” He pointed out that dormant wallets are currently absorbing more supply than miners are producing, and that accumulation by corporates and whales is helping to counteract recent selling pressure. Whales Drive Most Bitcoin Activity Glassnode’s on-chain data further reinforces the dominance of high-net-worth investors in the market. While the number of Bitcoin transactions has decreased, the average transaction size has risen to $36,200. “This trend implies that larger entities continue to utilize the Bitcoin network, with the throughput per transaction rising even as overall activity by count declines,” said Glassnode in a report published Thursday. More strikingly, transactions exceeding $100,000 now represent over 89% of all activity on the network. Glassnode noted that this pattern shows high-value participants are becoming the dominant force in Bitcoin’s transaction landscape.

Source: CryptoIntelligence