BlackRock’s Bitcoin ETF becomes second-largest holder globally: CryptoQuant

BlackRock’s iShares Bitcoin Trust (IBIT) has achieved a landmark milestone in the cryptocurrency sector, surpassing some of the largest corporate and exchange holdings of Bitcoin to become the world’s second-largest holder, trailing only the pseudonymous creator Satoshi Nakamoto.

Rapid growth since launch

Launched in January 2024, the IBIT ETF has quickly established itself as a dominant force in institutional crypto investment.

According to the latest on-chain analysis from CryptoQuant, the fund now holds over 781,000 bitcoins—valued at more than $88 billion at the current price of around $113,000 per unit.

This rise represents one of the fastest accumulation streaks in Bitcoin’s history.

Since May 2025, the IBIT ETF has consistently outpaced Coinbase’s reserves, and by August, it had firmly secured its position ahead of all known exchange holdings.

For context, Coinbase and Binance hold approximately 703,000 and 558,000 bitcoins, respectively.

Even more striking, IBIT has overtaken MicroStrategy—the company long known as the largest corporate Bitcoin holder.

According to BitcoinTreasuries data, MicroStrategy currently holds about 629,376 bitcoins, worth nearly $71 billion.

BlackRock’s ETF managed to surpass MicroStrategy’s five-year accumulation effort in less than 18 months, underscoring the accelerating pace of institutional adoption.

Institutional demand driving supply shock

The growing inflows into the IBIT ETF reflect a broader shift in Bitcoin’s investor base.

Demand is no longer driven solely by retail participants or cryptocurrency exchanges but increasingly by regulated financial products tailored for institutions.

Unlike exchanges, which use reserves to support trading activity, ETF inflows are typically locked up and removed from active circulation.

This creates a supply shock, reducing available liquidity in the market while placing upward pressure on Bitcoin’s price.

Analysts note that this ongoing trend provides strong structural support for the asset’s long-term valuation.

The preference for ETFs also highlights a behavioural change among investors.

As market participants increasingly gravitate toward traditional, compliant financial products, centralised funds like IBIT are absorbing capital that would otherwise have been distributed across retail platforms.

This dynamic reflects both a maturation of the asset class and a shift in sentiment toward regulated vehicles.

Centralisation concerns amid mainstream adoption

While BlackRock’s achievement signals a new era of mainstream acceptance for Bitcoin, it also raises questions about the cryptocurrency’s future direction.

Bitcoin was originally envisioned as a decentralised system, free from centralised control by corporations or governments.

The concentration of such a large portion of reserves in a single institutional vehicle challenges that ethos.

Industry observers caution that the centralisation of holdings may alter Bitcoin’s risk profile.

As ETFs and large corporations continue to dominate reserves, concerns grow that the cryptocurrency could lose some of its defining characteristics.

Whether this consolidation will impact Bitcoin’s long-term resilience remains an open question.

For now, the IBIT fund’s rapid rise underscores both the strength of institutional demand and the evolving nature of Bitcoin’s market structure.

As inflows continue, the balance between mainstream adoption and decentralised ideals will remain a critical area for investors to watch.

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