BlackRock and MicroStrategy now hold over 6% of Bitcoin's total supply, fueling demand beyond what miners can produce annually.
IBIT alone holds 700K BTC and ranks third in revenue among BlackRock funds, signaling immense institutional confidence in Bitcoin.
A looming Bitcoin supply shock is building as ETF inflows outpace miner output and exchange balances drop near critical levels.
BlackRock and MicroStrategy now jointly hold 1,297,325 BTC, worth about $140.8 billion. This represents roughly 6.18% of Bitcoin’s fixed supply. BlackRock alone holds over 700,000 BTC through its IBIT ETF, launched in January 2024. In just 18 months, IBIT has emerged as the most dominant player among US Bitcoin ETFs. MicroStrategy, led by Michael Saylor, continues its aggressive accumulation strategy. Their joint holdings now outpace the supply of newly mined Bitcoin.
IBIT Becomes a Revenue Giant
BlackRock’s IBIT ETF has quickly climbed to the third spot among BlackRock’s top revenue generators. It now holds 3.335% of the total 21 million BTC that will ever exist. On July 3rd, IBIT hit 698,919 BTC. By July 7th, a net inflow of 1,388 BTC pushed it past the 700,000 mark. At current prices, IBIT manages around $75.5 billion in BTC. Moreover, it accounts for nearly 55% of all Bitcoin held across US-based ETFs.
Besides IBIT’s large share, an additional 550,000 BTC sits within other US spot ETFs. That makes BlackRock the clear leader in this space. IBIT now competes with BlackRock’s top two funds, trailing by just $9 billion. At its current pace, it could take the top spot very soon.
Supply Shock Approaching Fast
Additionally, demand outstrips Bitcoin’s supply. US spot ETFs and MicroStrategy together purchased over $28.2 billion worth of BTC this year. Meanwhile, miners only issued $7.85 billion in the same period. Hence, the rate of accumulation has outpaced new supply.
Exchanges now hold just 2.11 million BTC. According to on-chain analyst MartyParty, once this drops below 2 million, Bitcoin may exit its consolidation phase. Consequently, a rally could follow due to tightening supply.
SEC Set to Speed Up ETF Approvals
Moreover, the SEC plans to streamline crypto ETF applications. The current 19b-4 process might soon be replaced. Issuers could simply file an S-1 form instead. This change would cut waiting periods to just 75 days. Hence, new ETFs could hit the market faster, opening the door for more institutional flows.
The post BlackRock and MicroStrategy Control 6.18% of Bitcoin Supply appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
