Bitcoin News Today: Institutional Adoption Drives BlackRock's Bitcoin ETF to 3.8% Supply Control

BlackRock's Bitcoin ETF has reached a new milestone, surpassing 800,000 BTC in assets under management (AUM), valued at approximately $97 billion as of October 2025. The fund, known as the iShares Bitcoin Trust (IBIT), has captured 3.8% of Bitcoin's total supply of 21 million coins, outpacing institutional holders like Michael Saylor's corporate treasury, which holds 3.1% of the total supply. This growth has been driven by sustained inflows, with the ETF adding $4.1 billion in net inflows over a seven-day period, including $426.2 million in a single day. Analysts attribute the surge to Bitcoin's 76% price increase since March 2024, rising from $69,000 to $121,500, and broader institutional adoption of digital assets. The ETF's dominance is underscored by its 10% share of all U.S. ETF inflows in a recent week, according to Bloomberg Senior ETF Analyst Eric Balchunas.

The rapid growth of BlackRock's ETF has reshaped the U.S. spot Bitcoin ETF landscape, with cumulative inflows exceeding $63 billion since their debut. The fund's success has also spurred competition, with even Grayscale's Bitcoin Trust (GBTC), which previously faced outflows, now seeing renewed demand. Timothy Misir of BRN noted that the ETF's performance reflects "structural demand" for Bitcoin as a strategic reserve asset, supported by reduced geopolitical risks and a stable investment environment. Meanwhile, BlackRock's IBIT has become its most profitable ETF, generating $244.5 million in annual revenue with nearly $100 billion in assets. This feat was achieved in just 435 days, far outpacing the 2,011 days it took for Vanguard's S&P 500 ETF to reach a similar milestone.

In Japan, a major fintech development saw PayPay, a SoftBank-backed mobile payments app with 70 million users, acquire a 40% equity stake in Binance Japan. The partnership aims to integrate crypto services into PayPay's ecosystem, allowing users to buy, sell, and store digital assets through Binance Japan. The collaboration leverages PayPay's extensive merchant network and Binance's blockchain infrastructure, with initial plans to enable crypto purchases via PayPay Money and withdrawals into the app's digital wallet. Binance Japan's General Manager, Takeshi Chino, emphasized the alliance as a "significant step toward the future of digital finance in Japan," positioning the partnership to expand Web3 adoption. The move aligns with Japan's regulatory push to balance oversight with innovation, as publicly traded companies increasingly adopt Bitcoin treasuries.

JPMorgan analysts, however, have issued a cautious outlook for Solana ETFs, predicting modest inflows compared to Bitcoin and Ethereum counterparts. The firm estimates that Solana ETFs could attract $1.5 billion in first-year inflows, roughly one-seventh of Ethereum's projected $9.6 billion. This forecast is based on weaker investor perception of Solana, declining on-chain activity, and the dominance of memecoin trading on the network. Nikolaos Panigirtzoglou, leading the analysis, cited factors such as investor fatigue from multiple ETF launches and competition from diversified crypto index products. The bank also highlighted the collapse of the Grayscale Solana Trust's premium to net asset value (NAV) from 750% to near zero, mirroring trends seen before Bitcoin and Ethereum ETF conversions. Despite these headwinds, the SEC is expected to approve nine Solana ETF applications this month, with deadlines for filings approaching October 16.

The convergence of institutional demand, fintech innovation, and regulatory developments underscores a pivotal shift in the digital asset landscape. BlackRock's ETF dominance, PayPay's strategic expansion into crypto, and JPMorgan's tempered expectations for Solana ETFs collectively reflect evolving dynamics in institutional adoption and retail accessibility. As market conditions stabilize and regulatory clarity improves, the role of ETFs in mainstream finance is likely to expand, reshaping the competitive landscape for both traditional and digital asset managers.

Source: [1] BlackRock Bitcoin ETF Surpasses 800,000 BTC After Record $4 Billion Inflow (https://coincentral.com/blackrock-bitcoin-etf-surpasses-800000-btc-after-record-4-billion-inflow/) [2] BlackRock's IBIT Bitcoin ETF Becomes Its Biggest ... (https://beincrypto.com/blackrock-ibit-bitcoin-etf-record-profit/) [3] U.S. BTC ETFs See $1B Inflows, Seen 6 Times Before ... (https://www.coindesk.com/markets/2025/10/07/u-s-bitcoin-etfs-log-usd1b-inflows-again-a-level-that-s-marked-local-tops-six-times-before) [4] PayPay Acquires 40% Stake in Binance Japan, Forming Strategic ... (https://financefeeds.com/paypay-acquires-40-stake-in-binance-japan-forming-strategic-alliance/) [5] JPMorgan Sees Modest Inflows for Solana ETFs Despite Likely SEC Approval (https://www.coindesk.com/markets/2025/10/09/jpmorgan-sees-modest-inflows-for-solana-etfs-despite-likely-sec-approval)