BlackRock Becomes Top Institutional Bitcoin Holder

The custody of cryptos shifts to a new era. Indeed, exchanges, long dominant, are giving ground to Wall Street giants. BlackRock, through its Bitcoin and Ethereum ETFs, now establishes itself as an essential custodian, directly competing with Coinbase and Binance. This massive asset transfer illustrates the rise of traditional finance in the crypto ecosystem and raises questions about the future of historic platforms, facing a gradual loss of their central role.

BlackRock surpasses Coinbase and Binance on BTC

While BlackRock’s CEO talks again about Bitcoin, data published by CryptoQuant have revealed an unprecedented shift on August 26 : BlackRock’s spot Bitcoin ETF, IBIT, now holds 745,357 BTC, surpassing the wallets of two of the world’s largest crypto exchange platforms.

In comparison, Coinbase shows 706,150 BTC, while Binance retains 584,557. This dynamic was built in just a few months, marking a turning point in the power balance regarding asset custody.

BlackRock thus becomes the largest institutional custodian of Bitcoin, a status unthinkable a year ago in a sector historically skeptical of traditional finance.

The figures provided clearly illustrate this evolution :

• IBIT (BlackRock’s Bitcoin ETF) : 745,357 BTC ;
• Coinbase : 706,150 BTC ;
• Binance : 584,557 BTC ;
• IBIT – Coinbase difference : +39,207 ;
• IBIT – Binance difference : +160,800 BTC.

This rapid progress reflects a rise in the prominence of ETFs in institutional holding strategies. The 30-day moving average of inflows on exchanges has fallen to its lowest level since May 2023.

Amid high prices, this reduction in deposits reveals a repositioning of investors toward regulated vehicles like ETFs, at the expense of exchange custody, a riskier method in an environment of increased oversight.

BlackRock’s Ethereum ETF now trails Coinbase

While attention was focused on BTC, another fundamental evolution is taking place on Ether. According to data compiled by CryptoQuant, BlackRock’s Ethereum ETF (iShares) now holds 3.6 million ETH, placing it just 200,000 ETH behind Coinbase, which still holds 3.8 million.

This dynamic is spectacular, as the ETF has accumulated 1.2 million ETH in less than two months, an acceleration which, if it continues at the current pace, could allow BlackRock to surpass Coinbase by year-end. Binance remains ahead with 4.7 million ETH, but its growth now appears contained, unlike the sustained pace of the ETF.

This rapid repositioning occurs in a context of massive flows toward ETH ETFs, with over 1.5 billion dollars of net inflows since August 22, including 450 million $ in a single day. Paradoxically, these inflows happen even though exchange inflows are historically low, despite ETH flirting with 4,600 $.

The average volume of inflows over 30 days has fallen back to 25 ETH per day, a level similar to last April, when the price of ETH was only 1,700 $. This dissonance reflects a shift in investors’ psychology, who now seem to prefer locking their positions in ETFs rather than maintaining liquid access on exchange platforms.