BlackRock’s spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has reached a significant milestone, accumulating holdings equivalent to 3.25% of Bitcoin’s entire circulating supply. This substantial holding underlines the fund’s position as a major participant in the Bitcoin market since its launch.
Simultaneously, the broader spot Bitcoin ETF market is experiencing a notable downturn in new investment inflows. Recent data indicates a sharp decline in capital entering these investment products, effectively drying up the stream of new money that characterized earlier periods following their introduction.
This combination of BlackRock’s dominant market share and the stalling of fresh inflows presents a complex picture. It points towards potential consolidation among large institutional holders, even as enthusiasm for new investment via these regulated vehicles appears to be waning significantly in the current market phase.