BlackRock’s iShares Bitcoin Trust Grows to $69.7 Billion in 18 Months

BlackRock’s iShares Bitcoin Trust (IBIT) has rapidly grown to become a significant force in the crypto market. In less than 18 months, the fund has amassed $69.7 billion in assets under management, holding over 3.25% of all Bitcoin in circulation. This makes it the largest U.S. Bitcoin ETF by market share and one of the 25 biggest ETFs globally.

The fund’s rapid ascent highlights the increasing involvement of traditional finance in the crypto space, even as interest from smaller investors appears to be waning. Institutional money continues to flow into the market, while retail involvement is slowing down. On-chain data indicates that the average Bitcoin transfer is now around $36,200, with nearly 90% of all activity coming from transactions above $100,000. This suggests that the network is primarily being used by high-value investors and firms.

Retail traders, influencers, and small projects are facing challenges in gaining visibility. With less organic buzz and increased competition, it has become harder to attract attention online. Crypto traffic, through SEO and targeted marketing, has become crucial for reaching new users, whether for wallets, exchanges, or crypto services. Visibility is now more important than ever.

Market analyst Enmanuel Cardozo noted that large institutions like BlackRock are influencing price action and driving demand. He also highlighted Bitcoin’s tendency to gain strength following major global conflicts, making it a long-term hold for some investors. Currently, BlackRock’s IBIT accounts for over 54% of all U.S. spot Bitcoin ETF holdings. Together, U.S. Bitcoin ETFs now own more than 6% of the total BTC supply.

While funds like IBIT continue to grow, short-term holders are reducing their positions. Since May 27, the number of BTC held by short-term holders has dropped by more than 800,000, down to 4.5 million BTC. This drop signals fewer new retail entries and more cautious behavior from casual investors. Analysts suggest this shift could be due to profit-taking or hesitation. Iliya Kalchev from Nexo believes the market may be waiting for fresh momentum, as old wallets are absorbing supply faster than miners can create it.

Despite the decline in short-term holdings, interest in Bitcoin ETFs remains strong. U.S. Bitcoin ETFs recently posted eight straight days of net positive inflows, pulling in $388 million in a single day. This indicates that institutional investors are still bullish on Bitcoin, even as retail activity slows.

With institutional buying strong but retail activity dipping, Bitcoin could be entering a holding pattern. Analysts suggest that the $92,000 price level might serve as the next big support zone if demand stalls. For now, BlackRock’s climb says a lot about the future of Bitcoin. The power is shifting away from everyday traders and toward the big players. However, as always in crypto, the next wave of movement could start from anywhere. Visibility, access, and timing are still everything.