BlackRock’s Bitcoin ETF Gobbles 3% of Supply—$970M Inflow Sparks Institutional Feeding Frenzy

Wall Street’s crypto landgrab hits overdrive as IBIT—BlackRock’s spot Bitcoin ETF—now controls a staggering 3% of all BTC in circulation. The fund just vacuumed up a record $970 million in fresh capital, proving even traditional finance giants can’t resist FOMO when the digital gold rush heats up.

Behind the numbers: IBIT’s holdings now rival mid-sized nations’ treasuries, with 197,943 BTC ($12.4 billion) under management. That’s enough Bitcoin to make Satoshi blush—if he weren’t busy being a ghost.

The irony? These same institutions spent years dismissing crypto as a ’fraud’ before deciding they wanted in on the action. Now they’re hoarding coins faster than a Lehman Brothers banker shredding documents in 2008.

While IBIT’s performance stood out, the broader US spot Bitcoin ETF market faced significant outflows on the same day.

Data from SoSoValue showed that most spot Bitcoin ETFs recorded either flat activity or negative net flows.

ARK Invest’s ARKB led the day’s losses with an outflow of $226 million. Fidelity’s FBTC followed closely, seeing $86.87 million exit. Grayscale’s GBTC reported $42 million in outflows, while Bitwise’s BITB shed another $21.1 million.

Despite the widespread outflows, IBIT’s strong inflow helped extend the overall market’s positive momentum. The US spot Bitcoin ETF sector has now recorded seven consecutive days of net inflows, totaling around $4 billion during the period.

Commenting on these activities, Bloomberg ETF analyst Eric Balchunas noted that spot bitcoin ETFs are moving “two steps forward after one step back.” He added that this gradual but consistent progress aligns with early predictions for the ETF sector’s growth pattern.