Investment advisers are reported to hold approximately $18.3 billion in Bitcoin and Ethereum ETFs, according to analyst claims. The data highlights the growing influence of institutional investment in the cryptocurrency market, with major custodians such as BlackRock playing a pivotal role in shaping the landscape. BlackRock’s iShares Bitcoin Trust (IBIT) has accumulated 745,357 BTC, surpassing the holdings of Coinbase and Binance, which reflect a structural shift in custody trends toward regulated ETFs. Similarly, BlackRock’s iShares Ethereum ETF holds 3.6 million ETH, closing in on Coinbase’s position and signaling a broader realignment in institutional crypto asset management.
The dominance of ETFs over exchange custody is evident in the declining inflows of Bitcoin and Ethereum on major platforms. Onchain data from CryptoQuant shows that Bitcoin’s 30-day moving average of exchange inflows has dropped to its lowest since May 2023, while Ethereum’s inflows have also significantly declined. This trend suggests reduced selling pressure from both retail and institutional participants, reinforcing confidence in current market positions. The concentration of supply in ETFs reduces liquid supply on exchanges, tightening the float and increasing price sensitivity to marginal flows.
Inflows into Bitcoin ETFs have seen a recent rebound, with $219 million in net inflows recorded on August 25. BlackRock’s IBIT, Fidelity’s FBTC, and ARK Invest’s ARKB accounted for over 85% of the day’s inflows, indicating renewed institutional confidence following favorable economic commentary from Federal Reserve Chair Jerome Powell. Meanwhile, Ethereum ETFs have outpaced Bitcoin in recent inflows, with $455 million in net inflows reported on August 26. This trend reflects institutional demand for yield-bearing assets, as staked Ethereum offers returns not available in Bitcoin.
The broader market structure is shifting as ETF balances continue to accumulate. Coinbase, once the largest Ethereum custodian, now holds 3.8 million ETH, a 52% decline since 2019. Binance, while still leading with 4.7 million ETH, has seen its growth consolidate. BlackRock’s rapid accumulation in both Bitcoin and Ethereum ETFs highlights the increasing preference for regulated custody solutions, which are viewed as more secure and compliant by institutional investors.
Bitcoin’s price has rebounded to approximately $111,000, supported by ETF inflows and reduced exchange outflows. Technical analysis suggests that institutional buyers are using dips as opportunities to accumulate through ETFs rather than exchanges. The ETF-driven tightening of liquidity is likely to amplify price movements, as ETF holders historically exhibit lower churn compared to retail investors. With Bitcoin ETFs holding $143 billion in assets and Ethereum ETFs approaching $16.5 billion, the institutional shift toward ETFs continues to reshape the market landscape.
Source: [1] BlackRock BTC ETF Balance Tops Coinbase, Is ETH Next? (https://cointelegraph.com/news/blackrock-btc-etf-balance-flips-coinbase-is-eth-next) [2] Bitcoin ETF Inflows: BTC-USD Rebounds to $111K as … (https://www.tradingnews.com/news/bitcoin-etf-inflows-btc-usd-recovers-to-111k-usd) [3] Ethereum ETF Inflows Outpace Bitcoin ETFs: Is ETH a … (https://watcher.guru/news/ethereum-etf-inflows-outpace-bitcoin-etfs-is-eth-a-better-buy)
