Bitcoin News Today: BlackRock's ETFs Spark Crypto 'Supply Shock,' Inflows Outpace Bitcoin's Annual Issuance 7.4:1

BlackRock's crypto ETFs have driven record investment inflows in 2025, with the firm's Bitcoin and Ethereum products capturing over $46 billion in net inflows since January 1, according to a CryptoNews analysis. The iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA) have dominated the spot crypto ETF market, accounting for 85% and 88% of BTC and ETH ETF inflows on October 6, respectively. By September 30, BlackRock's on-chain Bitcoin and Ethereum holdings had surged to $102.09 billion, up 28.2% from $79.63 billion at the start of Q3 2025. Bitcoin's contribution to the growth was $10.99 billion, while Ethereum's holdings rose $11.46 billion, more than tripling in value over the quarter.

The momentum has continued into Q4, with BlackRock's crypto portfolio adding $10.43 billion in the first week of October alone. As of October 8, the firm held 769,220 BTC ($95.96 billion) and 3.89 million ETH ($18.26 billion), solidifying its position as the largest institutional holder of digital assets. IBIT's performance has been particularly striking, with $3.5 billion in weekly inflows during the first week of October 2025, outpacing all S&P 500 ETFs and accounting for 10% of total net ETF flows. This surge coincided with Bitcoin reaching an all-time high of $126,080 on October 6, followed by a pullback to $122,000 by October 8, according to Markets.

BlackRock's ETFs have reshaped institutional demand for crypto. Since their launch in early 2024, the firm's Bitcoin ETF has attracted $65 billion in net inflows, while Ethereum ETFs added $12.5 billion. IBIT's assets under management (AUM) surpassed $70 billion in just 341 trading days, the fastest growth rate for any U.S. ETF. The fund now generates $244.5 million in annual fee revenue, surpassing BlackRock's flagship S&P 500 ETF (IVV) despite being less than half its size in AUM, a Forbes analysis.

The ETF inflows have had a direct impact on Bitcoin's price and market dynamics. Between October 1 and 8, BlackRock's ETFs added $10.43 billion in value, averaging $1 billion per day. The firm's IBIT alone accounted for $805 million in BTC inflows on October 6, while ETHA absorbed $212.9 million in ETH. These inflows have created a "supply shock" narrative, as institutional purchases outpace Bitcoin's annual issuance by a 7.4:1 ratio, according to market analysts.

BlackRock's dominance extends to trading volumes, with IBIT recording $5.7 billion in daily trading volume on October 7. The ETF's performance has also outpaced traditional benchmarks: it ranks fourth in year-to-date inflows among U.S. ETFs, trailing only heavyweights like the Vanguard Total Stock Market ETF (VTI), CryptoSlate noted. By October 14, IBIT had entered the top 20 U.S. ETFs by AUM with $90.7 billion, surpassing the Technology Select Sector SPDR Fund (XLK).

The firm's crypto ETFs have also influenced broader market infrastructure. BlackRock's ETHA moved 93,158 ETH ($368.35 million) to Coinbase Prime in a single day, while IBIT transferred 703.736 BTC ($77.67 million) to the same custodian. These transactions, though routine for liquidity management, underscore the scale of institutional activity in crypto markets, CryptoBasic reported.

Analysts project continued growth for BlackRock's ETFs, with some forecasting Bitcoin could reach $200,000 by year-end 2025 if inflows remain robust. The Federal Reserve's anticipated rate cuts and regulatory clarity, including President Trump's executive order on crypto in January 2025, are seen as catalysts for sustained institutional adoption. BlackRock's CEO, Larry Fink, has publicly endorsed Bitcoin as a strategic asset, recommending a 1-2% allocation for diversification.