BlackRock’s Bitcoin ETF Surpasses 700,000 BTC, Dominates U.S. Market with 55% Share

BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has achieved a significant milestone by surpassing 700,000 BTC under management, which represents over 3% of Bitcoin’s total supply. This accomplishment was reached in just 18 months since its launch, positioning IBIT as the leading U.S. spot ETF with over 55% market share. The fund's rapid accumulation and impressive 82.7% return have sparked discussions about supply dynamics, competition, and regulatory frameworks within the financial sector.

Launched in January 2024, BlackRock’s Bitcoin ETF has exceeded expectations from its inception. The fund reached 700,307 BTC after adding 164.6 million in inflows in a single Monday trading session. Official IBIT figures show 698,919 BTC held by Thursday, meaning the ETF added over 1,388 BTC in just two days. This rapid accumulation has been described as "ridiculous" by industry experts, highlighting how IBIT has taken the lead among over 1,197 BlackRock ETF offerings, surpassing even its flagship S&P 500 product.

IBIT now controls 55% of total Bitcoin in U.S. spot ETFs, making it the dominant force in regulated crypto investment. Combined with MicroStrategy, Bitcoin’s corporate treasurer, and U.S. ETFs, institutional buyers have purchased $28.22 billion worth of Bitcoin this year alone, vastly outpacing the $7.85 billion newly mined supply. This "hoarding gap" puts upward pressure on prices and intensifies competition for limited tokens.

BlackRock’s Bitcoin ETF has delivered total returns of around 82.67% since inception, far exceeding many traditional asset classes. With $76 billion in assets under management, the ETF now generates more revenue than BlackRock’s core S&P 500 offering. Institutions are ingesting more Bitcoin than miners can produce. As demand outstrips supply, price appreciation becomes more likely, reinforcing the ETF’s allure. Market analysts note that such an imbalance solidifies IBIT’s pricing power and amplifies its influence as a price-driving institution.

The SEC is reportedly considering reforms to streamline BlackRock’s Bitcoin ETF and future crypto ETF approvals. Proposed changes aim to reduce filings to a single S-1 with a 75-day review window; approval by default if no objections arise. Beyond IBIT, products like REX-Osprey’s Solana staking ETF show SEC openness to novel crypto-linked assets, expanding the investment landscape. With BlackRock’s Bitcoin ETF controlling the majority share, rivals like Fidelity’s FBTC and Grayscale’s GBTC now trail far behind with about 203,000 and 184,000 BTC, respectively. MicroStrategy remains a major corporate holder with roughly 597,000 BTC.

Despite impressive growth, BlackRock’s Bitcoin ETF still faces scrutiny. Continued institutional accumulation could spook regulators concerned about market concentration or systemic risk. The looming supply squeeze, combined with evolving SEC frameworks, could prompt volatility in both inflows and price. While streamlined approvals may spur innovation, they could also fuel asset bubbles. Long-term success depends on transparent governance, fair market practices, and robust compliance.

At its current pacing of nearly 39,000 BTC per month, IBIT could potentially hit one million BTC in holdings by early 2026, impacting the crypto landscape dramatically. But such growth also amplifies scrutiny; regulatory bodies may impose limits on concentration or inflate systemic oversight. Future ETF iterations, ranging from staking to altcoin baskets, will need to strike balance: innovation with stability, growth with regulatory vigilance.

BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has surpassed 700,000 BTC under management, representing over 55% of all Bitcoin held by U.S. spot Bitcoin ETFs. The fund’s rapid growth and $75.5 billion in assets now generate more revenue for BlackRock than its flagship S&P 500 ETF. Its rapid accumulation, 700K BTC within 18 months, combined with institutional trust in BlackRock, created a virtuous cycle of inflows and market influence. Yes. Fidelity, Grayscale, and others remain significant, although IBIT’s scale redefines entry thresholds and investor expectations. Institutional demand exceeding miner supply likely supports upward price momentum and reduces market liquidity, favourable conditions for price increases. The SEC seems poised to streamline approvals, as seen with IBIT, and has recently greenlit Solana and staking ETFs under new frameworks.