Thomas Daniels
BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has amassed nearly $70 billion in assets under management, signaling a clear shift toward institutional accumulation even as retail investor inflows ebb.
The ETF now controls approximately $69.7 billion worth of Bitcoin—equal to 3.25% of the total BTC supply—while capturing over 54.7% of the U.S. market share in spot Bitcoin ETFs. Combined, these funds represent 6.12% of the current Bitcoin supply, based on Dune analytics.
Launched on January 11, 2024, U.S. spot Bitcoin ETFs have seen steady capital inflows since inception. According to Farside Investors, U.S. Bitcoin ETFs recorded eight consecutive days of positive net flows, totaling $388 million in BTC on one recent Wednesday.
IBIT’s growth has propelled it into the top 25 largest ETFs globally—crypto and traditional—ranking 23rd in assets under management, per VettaFi data.
However, analysts caution that ETF demand is competing with profit-taking by miners. Nexo analyst Iliya Kalchev noted: “Long‑dormant wallets are currently absorbing more supply than miners are producing,” and corporate treasuries and institutional accumulation are offsetting miner sales. Kalchev added that “a breakout may need a new catalyst or sentiment shift.”
Onchain data from Glassnode indicates institutional dominance in Bitcoin transactions: average transaction sizes have climbed to $36,200 even as overall volume declines. Transfers exceeding $100,000 now account for 89% of network activity—evidence of a market increasingly driven by large-value participants.
In contrast, retail interest appears to be waning. The cohort of short‑term Bitcoin holders has dropped from 5.3 million BTC on May 27 to 4.5 million BTC, according to CryptoQuant. The report states this decline signals that “new money is drying up in Bitcoin.”
If institutional demand diminishes, CryptoQuant analysts suggest Bitcoin may rely on support near $92,000, corresponding to the realized onchain price typically acting as a cyclical bull‑phase floor.
