BlackRock’s Bitcoin ETF Assets Top $70 Billion Amid Institutional Influx

BlackRock’s flagship spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has surpassed the $70 billion threshold in assets under management, highlighting a significant institutional shift into digital assets, even as retail investor participation has shown signs of slowing.

The world’s largest asset manager announced its IBIT ETF has surpassed $69.7 billion, representing over 3.25% of the total Bitcoin supply acquired.

According to Dune Analytics data, IBIT now commands more than 54.7% of the market share held by all US spot Bitcoin ETFs combined. These collective ETFs hold approximately 6.12% of the current Bitcoin supply. This milestone comes less than a year and a half since US spot Bitcoin ETFs began trading on January 11, 2024.

The IBIT ETF has also entered the world’s top 25 largest ETFs globally, ranking 23rd among both cryptocurrency and traditional finance products, according to data provider VettaFi.

Despite the record inflows, analysts note persistent selling pressure. Bitcoin’s eight consecutive days of positive net inflows, bringing in $388 million recently, are offsetting factors like profit-taking and sales by Bitcoin miners.

“A breakout may need a new catalyst or sentiment shift. Long-dormant wallets are currently absorbing more supply than miners are producing, and corporate treasury strategies and accumulation from large investors continue to offset profit-taking,” noted Iliya Kalchev, an analyst at Nexo.

On-chain data from Glassnode indicates a concentration trend on the Bitcoin network. Large-value transfers now dominate activity, with the average transaction size reaching approximately $36,200.

Furthermore, transactions exceeding $100,000 now account for over 89% of the network’s activity, reinforcing the dominance of high-value participants.

Meanwhile, CryptoQuant data suggests new retail investor inflows are waning significantly. The cohort of short-term holders (holding less than one year) has shrunk by over 800,000 BTC, falling below 5 million addresses. CryptoQuant suggests this signals diminishing new investment.

If investor demand continues to weaken, CryptoQuant indicates a significant support level near the $92,000 mark could be tested, referencing traders’ “onchain realized price.”