The landscape of digital asset investment is undergoing a seismic shift as institutional adoption accelerates—led by none other than BlackRock, the world’s largest asset manager. In a striking development, BlackRock’s spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has amassed over $69.7 billion in assets under management (AUM), capturing more than 3.25% of the total Bitcoin supply.
This milestone, achieved less than 18 months after the launch of U.S. spot Bitcoin ETFs on January 11, 2024, underscores a growing institutional appetite for Bitcoin—even as retail participation shows signs of cooling.
Institutional Momentum Builds
BlackRock’s IBIT ETF now commands over 54.7% of the U.S. spot Bitcoin ETF market share. Collectively, all U.S. spot Bitcoin ETFs hold approximately 6.12% of Bitcoin’s circulating supply, according to on-chain analytics platform Dune. The rapid accumulation by BlackRock signals a structural shift in how major financial institutions view digital assets—not as speculative instruments, but as long-term strategic holdings.
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Enmanuel Cardozo, market analyst at asset tokenization platform Brickken, emphasized the significance of this trend:
“Large institutions like BlackRock are a big part of the price action, and supply scarcity is an important driver right now.”
He added that Bitcoin has historically outperformed traditional global assets following major geopolitical events—a pattern that could repeat amid current macroeconomic uncertainties.
Sustained ETF Inflows Signal Confidence
Despite broader market consolidation, demand for Bitcoin ETFs remains resilient. U.S.-listed Bitcoin ETFs recorded eight consecutive days of net positive inflows, accumulating $388 million worth of Bitcoin in a single day, data from Farside Investors shows.
This sustained buying pressure has elevated IBIT into elite financial territory: it now ranks as the 23rd largest ETF globally by AUM, crossing into the top 25 alongside established giants in equities and bonds, according to VettaFi.
Such positioning reflects not just capital inflow, but also growing legitimacy within mainstream finance. As more traditional investors seek exposure to Bitcoin through regulated vehicles, ETFs are becoming a primary gateway.
Miners Sell, Whales Accumulate: A Tale of Two Markets
While institutional buying continues, other segments of the market are showing contrasting behavior.
Analysts note that miner selling and profit-taking by short-term holders are creating downward pressure. Iliya Kalchev, an analyst at Nexo, cautioned that further upside may require fresh catalysts:
“A breakout may need a new catalyst or sentiment shift.”
However, Kalchev also pointed to a counterbalancing force: dormant wallets—often associated with long-term "hodlers"—are reactivating and absorbing supply at a rate exceeding new miner output. This trend suggests strong underlying demand from deep-pocketed investors who view current prices as opportune entry points.
Corporate treasury strategies are also playing a role. Companies increasingly view Bitcoin as a hedge against inflation and currency devaluation, mirroring the strategy popularized by MicroStrategy.
On-Chain Data Reveals Elite Dominance
On-chain analytics from Glassnode reveal a profound shift in network activity: large-value transactions now dominate Bitcoin’s ecosystem.
Although the total number of daily transactions has declined, the average transaction size has surged to $36,200. More telling is the fact that transfers exceeding $100,000 now represent over 89% of all network activity.
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This concentration highlights a growing trend: Bitcoin is increasingly being used as a settlement layer for major financial players, rather than a peer-to-peer cash system for everyday users.
Glassnode summarized the shift:
“This trend implies that larger entities continue to utilize the Bitcoin network, with the throughput per transaction rising even as overall activity by count declines.”
The data reinforces the narrative that whales and institutions—not retail traders—are driving current market dynamics.
Retail Fades as ‘New Money’ Dries Up
While whales accumulate, retail momentum appears to be waning.
CryptoQuant reported that Bitcoin’s short-term holder (STH) cohort—the group of investors who acquired BTC within the last 155 days—has dropped to just 4.5 million BTC, down from 5.3 million BTC on May 27. This 800,000 BTC decline suggests that fresh capital from new investors is slowing significantly.
“New money is drying up in Bitcoin,” CryptoQuant stated in its Friday report.
This contraction raises concerns about market depth and liquidity. Historically, retail participation has fueled explosive rallies during bull markets. Its absence could prolong consolidation phases or limit upward momentum unless offset by stronger institutional inflows.
What’s Next? Support Levels and Market Outlook
With retail demand softening and institutions accumulating steadily, analysts are eyeing key technical levels.
CryptoQuant suggests that if investor demand continues to weaken, Bitcoin may find its next major support around $92,000—a level closely aligned with the on-chain realized price, which represents the average price at which all existing BTC was last moved.
This metric is widely watched during bull cycles as a psychological and technical floor. A drop toward this zone could present another accumulation opportunity for large investors.
FAQ: Understanding the Current Bitcoin Market Shift
Q: How much Bitcoin does BlackRock own through its ETF?
A: BlackRock’s iShares Bitcoin Trust (IBIT) holds over 3.25% of the total Bitcoin supply, valued at approximately $69.7 billion as of mid-2025.
Q: Why are large transactions dominating Bitcoin activity?
A: High-net-worth individuals and institutions are increasingly using Bitcoin as a store of value and settlement layer, leading to fewer but larger transactions—reflecting maturation in network usage.
Q: Is retail interest in Bitcoin declining?
A: Yes. Data shows a drop in short-term holder supply by over 800,000 BTC since late May 2025, indicating reduced inflow from new or smaller investors.
Q: Could Bitcoin fall below $92,000?
A: While possible during periods of weak demand, $92,000 aligns with the on-chain realized price—a strong historical support level where long-term holders tend to buy rather than sell.
Q: Are U.S. Bitcoin ETFs still attracting investment?
A: Yes. Eight straight days of net inflows totaling hundreds of millions suggest continued institutional confidence despite retail pullback.
Q: What role do dormant wallets play in current market dynamics?
A: Reactivated long-dormant wallets indicate that early holders are re-engaging—often to accumulate more BTC—helping absorb supply being sold by miners and short-term traders.
As the balance of power shifts from retail to institutional hands, Bitcoin’s evolution into a macro financial asset accelerates. With BlackRock leading the charge and on-chain trends revealing elite accumulation, the foundation for the next phase of growth appears to be forming—even if retail enthusiasm takes a back seat for now.
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