tl;dr
BlackRock's spot Bitcoin ETF (IBIT) has rapidly become the dominant player in the US Bitcoin ETF market, holding over 636,000 BTC—more than twice the combined holdings of all other US spot Bitcoin ETFs. Since their approval in early 2024, IBIT has led in capital inflows and BTC accumulation, while l...
BlackRock's spot Bitcoin ETF (IBIT) is rapidly becoming the dominant force in the US institutional Bitcoin ETF market, holding over 636,000 BTC—more than twice the combined BTC held by all other US spot Bitcoin ETFs. Since their approval in early 2024, IBIT has led capital inflows and BTC accumulation, while legacy products like Grayscale’s GBTC continue to lose assets.
IBIT's huge size and growing liquidity are attracting significant institutional investors such as Mubadala Investment Company, Citadel Advisors, and Hong Kong’s Avenir Group, who have substantially increased their stakes in early 2025. Mubadala boosted its shares to 8.7 million, Citadel Advisors tripled its holdings to over 3 million shares valued at roughly $147 million, and Avenir Group expanded its position to 14.7 million shares by March 31, 2025.
This rapid accumulation and market share raise concerns about market concentration and the potential for a monopoly in Bitcoin ETF access. Analysts note that IBIT’s dominance bolsters its appeal as the safest and most recognized vehicle for Bitcoin exposure, but this comes at the cost of declining liquidity and relevance for smaller ETFs, risking closures or mergers. The market could become increasingly reliant on BlackRock as the single institutional gateway to Bitcoin.
The trend resembles consolidation patterns seen in Big Tech markets, where institutional demand gravitates toward the most trusted brand. IBIT’s overwhelming lead is not just redefining the Bitcoin ETF landscape but also prompting critical questions about the long-term implications for market structure, competition, and investor choice.
As institutions increasingly funnel Bitcoin exposure through IBIT, market watchers debate whether this represents institutional trust or signals the quiet emergence of a monopoly in Bitcoin ETFs. This evolving dynamic is reshaping how institutional investors gain access to Bitcoin, potentially making BlackRock synonymous with institutional Bitcoin investment in the years ahead.