Bitcoin ETFs Hold 6% of Supply, BlackRock Leads with 692,876 BTC

Bitcoin ETFs have accumulated a significant portion of the cryptocurrency's supply, now holding over 6% of the total. This substantial accumulation by institutional funds is exerting considerable supply-side pressure on the broader market. Among the ETF issuers, BlackRock stands out with 692,876 BTC under management, solidifying its position as the leading institutional player in Bitcoin exposure.

The average entry price for ETF-held Bitcoin, excluding GBTC, is approximately $73,600. This price point is now a critical technical and psychological support level, particularly in the event of a sharp market correction. Additionally, the ETF MVRV ratio is currently at 1.43, indicating modest profitability for institutional holders. Historically, Bitcoin tops have formed around an MVRV of 3.7, suggesting that the market may still have significant upside potential.

CryptoQuant notes that ETF investors, primarily traditional and risk-averse institutions, are unlikely to behave like retail speculators. Many of these institutions may choose to secure profits well before typical cycle peaks, with returns of 50%–75% often viewed as sufficient in traditional portfolio terms. This cautious approach by institutions could lead to early profit-taking, potentially stabilizing the market but also limiting further gains.

With over 6% of Bitcoin’s supply locked in ETF structures, the market is entering a new phase characterized by supply constraints and institutional dominance. However, with many ETFs near breakeven based on current prices, the $73K level has become a crucial marker for trend stability. CryptoQuant concludes that while the overall sentiment remains bullish, close monitoring of ETF MVRV metrics is essential to detect early signs of institutional profit-taking or shifts in positioning.