Preview: "BlackRock is emerging as the top custodian for Bitcoin and Ether as its ETFs continue to reshape market dynamics in 2025."
Key takeaways:
-
BlackRock’s iShares ETH ETF holds 3.6 million ETH, just 200,000 behind Coinbase.
-
IBIT’s 745,000 BTC already surpasses Coinbase and Binance reserves.
-
Falling Bitcoin and Ether inflows signal tightening supply and reduced selling pressure.
BlackRock’s iShares Ethereum ETF is on the verge of overtaking Coinbase as the world’s second-largest Ether
custodian, narrowing the gap to just 200,000 ETH. With holdings now at 3.6 million ETH, iShares has added 1.2 million ETH in under two months.
At this pace, it could surpass Coinbase by year-end and reduce Binance’s dominance to a margin of just 1.1 million ETH.
The shift highlights a major divergence in custody trends. Binance still leads with 4.7 million ETH, up from 2.5 million in 2019, though growth has consolidated. Coinbase, once the largest Ether custodian with more than 8 million ETH in 2019, has seen reserves fall to 3.8 million ETH, a 52% decline in six years.
BlackRock’s rapid accumulation signals a structural realignment in crypto markets, as institutions increasingly favor regulated ETFs over exchange custody. The acceleration of ETF holdings reduces liquid supply and points to deeper institutional conviction in Ether. ,
This momentum is also not limited to ETH. Latest onchain data shows IBIT’s Bitcoin
holdings have increased to about 745,357 BTC, eclipsing Coinbase at 706,150 BTC and Binance at 584,557 BTC.
These developments underscore BlackRock’s emergence as the largest institutional custodian across both Bitcoin and Ether, cementing its influence over crypto’s market structure.
Related: Bitcoin can still hit $160K by Christmas with ‘average’ Q4 comeback
Bitcoin and Ether inflows dip across exchanges
Data from CryptoQuant indicates that the 30-day moving average of BTC inflows has dropped to its lowest since May 2023, while BTC trades near $111,000. Coinbase and Binance both report historically low deposits, suggesting reduced selling pressure from both retail and institutional channels.
Ether inflows tell a similar story. The 30-day SMA (simple moving average) mean inflows have declined to their April 10 low of 25 ETH, a period when ETH traded at $1,700, despite the asset now sitting near $4,600. The absence of exchange inflows at higher prices suggests investors are reluctant to sell, reinforcing conviction in current market positioning.
At the same time, ETF flows highlight where demand is coming from. Ether ETFs have seen more than $1.5 billion in net inflows since Thursday, including $450 million in a single day yesterday.
Bitcoin ETFs posted heavy outflows of $1.17 billion last week, but buying pressure has returned in recent sessions with nearly $310 million in inflows over the past two days.
Together, falling exchange inflows and accelerating ETF accumulation highlight a tightening supply backdrop for both BTC and ETH, setting the stage for sustained bullish momentum into year-end.
){kind=link}
0 Comments