Market Shift to ETF Custody
BlackRock’s iShares Bitcoin Trust (IBIT) has accumulated 745,357 BTC, overtaking Coinbase’s 706,150 BTC and Binance’s 584,557 BTC in custody volume. This milestone marks the first time a regulated ETF has surpassed major centralized exchanges in digital asset holdings.
According to CryptoQuant data, US spot Bitcoin ETFs recorded a net outflow of $126.7 million on August 30, while IBIT added $24.6 million to its holdings. Concurrently, other institutional vehicles including Fidelity, ARK, and Grayscale experienced declines, underscoring a reallocation of capital toward regulated funds.
The iShares Ethereum ETF has also seen rapid growth, amassing 3.6 million ETH—just 200,000 ETH shy of Coinbase’s 3.8 million ETH. Binance remains the largest custodian of Ether with 4.7 million ETH, but BlackRock’s ETF added 1.2 million ETH in less than two months, positioning it to potentially overtake Coinbase by year-end.
Data from CryptoQuant indicates that exchange inflows of both Bitcoin and Ethereum have declined to multi-year lows. The 30-day moving average of Bitcoin inflows into exchanges is at its weakest since May 2023, while Ethereum inflows have similarly contracted, suggesting reduced selling pressure and a tightening of supply in spot markets.
This structural shift toward ETF custody reflects growing institutional comfort with regulated investment vehicles. As traditional finance firms like BlackRock deepen their presence in crypto markets, the role of centralized exchanges may diminish, reshaping the custody landscape and influencing future market dynamics.
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