An astonishing number is changing the power dynamics of Bitcoin: BlackRock's Bitcoin ETF holdings have surpassed 662,500, accounting for more than 3% of the total Bitcoin supply. This giant, managing $10 trillion in assets, is redefining what an 'institutional bull market' means with real money.
Let’s put this number in a larger context. The total value of Bitcoin held by all institutions through ETFs has exceeded $70 billion, and BlackRock’s IBIT product sees an average daily inflow of over $100 million. Fidelity follows closely behind, and the competition between these two traditional financial giants directly elevates the institutionalization level of the entire market. This is not just a simple inflow of funds, but a historic shift of Bitcoin from 'currency of rebels' to 'institutional reserve asset.'
The impact of this shift is profound. First, the pricing logic of the market is being rewritten. Previously, retail sentiment dominated prices; now, the allocation demand from institutions dictates it. Secondly, a large amount of Bitcoin is locked in institutional accounts, and the amount of Bitcoin that can actually be traded in the market is decreasing, quietly pushing up the price floor due to this supply-demand imbalance.
More importantly, it is the shift in narrative. When traditional financial giants like BlackRock make massive purchases, they send a clear signal to the world: Bitcoin is no longer a speculative toy but a core asset worth long-term allocation. The power of this cognitive shift is far more potent than any technical analysis.
Of course, institutionalization also brings new contradictions. The original intention of Bitcoin was decentralization, but now a few institutions control a large amount of Bitcoin. When these whales decide to buy or sell, the entire market trembles. We are witnessing a paradox: decentralized Bitcoin is being dominated by centralized forces.
But anyway, the trend of institutionalization is now irreversible. For ordinary investors, rather than fighting against this trend, it is better to learn how to survive under the new rules. Following the footsteps of 'smart money' and understanding the investment logic of institutions may be the key to survival in this new era. After all, when the elephant dances, the best choice for the ant is to sway along with the rhythm.
