- BlackRock’s iShares ETF now holds about 781,160 BTC, surpassing Coinbase and Binance, becoming the largest known Bitcoin custodian globally.
- Institutional custody reduces circulating Bitcoin supply as ETF-held coins remain off exchanges, tightening liquidity and reinforcing structured market demand.
- Exchanges like Coinbase and Binance lose ground as investors favor ETF custody, reshaping the role of trading platforms in Bitcoin markets.
BlackRock’s iShares Bitcoin Trust (IBIT) has surpassed leading exchanges to become the largest known Bitcoin holder. This shift signals a structural transformation in the custody and demand framework of the Bitcoin market.
Institutional Custody Redefines Bitcoin Holdings
The launch of U.S. spot Bitcoin ETFs has accelerated institutional participation, with BlackRock’s iShares ETF emerging as the most dominant custodian. Its reserves have steadily expanded since early 2025, overtaking Coinbase in May before establishing a wider lead in August.
Current on-chain data indicates IBIT holds approximately 781,160 BTC. This amount now exceeds Coinbase’s 703,110 BTC and Binance’s 558,070 BTC, positioning IBIT as the largest single custodian after Satoshi Nakamoto’s unmoved holdings.
CryptoQuant addressed this shift on X, quoting CryptoOnchain: “Inflows into BlackRock’s ETF signify a fundamental change in market structure. The primary demand driver has shifted from retail-centric exchange accumulation to regulated, institutional-grade financial products.”
Bitcoin Supply Moves Away From Exchanges
One of the clearest effects of IBIT’s growth is a tightening supply environment. Unlike exchange reserves, which remain liquid for active trading, ETF-held Bitcoin is generally removed from circulation, reducing market availability.
These consistent inflows into IBIT have amplified demand pressures. With large volumes locked in custodial products, buyers encounter restricted supply, strengthening underlying support for Bitcoin prices across trading platforms.
The process has highlighted how ETFs influence Bitcoin differently compared to exchanges. By removing coins from active markets, IBIT is contributing to a new liquidity environment shaped by institutional flows rather than retail behavior.
Exchanges Lose Ground in Custodial Role
The rise of BlackRock’s ETF challenges the traditional dominance of exchanges as primary Bitcoin custodians. Investors are increasingly prioritizing regulatory clarity, long-term custody, and perceived institutional safety over holding coins directly on trading platforms.
Coinbase and Binance, once seen as central Bitcoin vaults, now hold fewer reserves compared to IBIT. Their role is shifting toward facilitating transactions and liquidity rather than acting as the largest custodial holders.
CryptoOnchain described this change as “The Great Custodial Flippening,” underscoring how institutional-grade vehicles are reshaping the structure of Bitcoin ownership. While exchanges remain indispensable for trading activity, institutional custodians are redefining how Bitcoin is stored and accessed in the broader market.
