Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
BlackRock has solidified its position as a dominant force in cryptocurrency custody, with its Bitcoin exchange-traded fund (ETF) now holding more BTC than major exchanges Coinbase and Binance. The asset manager’s iShares Ethereum ETF is also rapidly catching up to Coinbase, signaling a significant structural shift in the crypto market as institutional investors increasingly favor regulated investment vehicles in 2025.
BlackRock’s Dominance in Bitcoin Custody
BlackRock’s iShares Bitcoin Trust (IBIT) currently holds approximately 745,357 BTC, surpassing Coinbase’s reserves of 706,150 BTC and Binance’s 584,557 BTC. This rapid accumulation highlights BlackRock’s growing influence over Bitcoin’s market structure.
Ethereum ETF Nears Major Milestone
The iShares Ethereum ETF holds 3.6 million ETH, narrowing the gap to just 200,000 ETH behind Coinbase. With an addition of 1.2 million ETH in less than two months, BlackRock’s ETH ETF is on track to potentially surpass Coinbase as the world’s second-largest Ether custodian by year-end.
Shifting Custody Landscape
This rapid growth contrasts with the trends observed at centralized exchanges. While Binance remains the largest Ether custodian with 4.7 million ETH, Coinbase’s Ether reserves have declined by 52% over six years, falling from over 8 million ETH in 2019 to 3.8 million ETH today.
BlackRock’s accelerating accumulation across both Bitcoin and Ether ETFs underscores a major structural realignment in crypto markets. Institutions are increasingly opting for regulated ETF products, which reduces the liquid supply of these assets and indicates deeper conviction among institutional investors.
Declining Exchange Inflows Signal Tightening Supply
Bitcoin Inflow Trends
On-chain data from CryptoQuant reveals that the 30-day moving average of Bitcoin inflows to exchanges has dropped to its lowest point since May 2023. Both Coinbase and Binance report historically low BTC deposits, suggesting reduced selling pressure from both retail and institutional channels, even as BTC trades near $111,000.
Ethereum Inflow Trends
A similar trend is observed for Ether, with the 30-day mean inflows declining to levels last seen in April, when ETH was priced around $1,700. Despite Ether now trading near $4,600, the absence of significant exchange inflows suggests investors are reluctant to sell, reinforcing confidence in current market positioning.
Implications for Market Structure
Simultaneously, ETF flows highlight strong demand. Ether ETFs have recorded over $1.5 billion in net inflows since last Thursday, including a $450 million single-day influx. While Bitcoin ETFs experienced heavy outflows last week, they have seen a return of buying pressure with nearly $310 million in inflows over the past two days.
These combined trends of falling exchange inflows and accelerating ETF accumulation indicate a tightening supply backdrop for both Bitcoin and Ether. This dynamic is poised to set the stage for sustained bullish momentum heading into the end of the year, further cementing BlackRock’s influence in the evolving digital asset landscape.
