Bitcoin News
The people shaping BlackRock’s IBIT
The IBIT inflow machine
BlackRock’s IBIT recorded $300 million in inflows on Wednesday, October 23. This amount pushed total inflows since inception to over $23.5 billion. This single day of activity saw the fund scoop more than 4,500 Bitcoins. This single day’s scoop is ten times the daily Bitcoin production of 450 BTC. Samara Cohen, the head of the ETF division at BlackRock, says the firm launched the product to address the demand for Bitcoin across the global market via the ETF wrapper. Within 10 months of the launch, the total market cap of Bitcoin ETFs crossed $63 billion. I observe that 75% of direct investors in IBIT never owned an iShare ETF before. 80% of all buyers of these US spot Bitcoin products are direct investors. Larry Fink, the BlackRock CEO, says Bitcoin adoption depends on liquidity and transparency. He says the adoption is not a function of regulation. IBIT reached $50 billion in assets under management in 2024. This growth contributes to the $50 billion in active ETF inflows that fueled a record year for the iShares business.
Regulatory shifts and retail
The SEC approved in-kind creations and redemptions for Bitcoin and Ethereum ETFs on July 29, 2025. Chairman Paul Atkins says these approvals build a rational regulatory framework for crypto. This decision allows investors to swap tokens directly with issuers. The Commission also raised the position limit on IBIT options trading tenfold. This increase could enable an explosion of option-based Bitcoin ETFs. Nate Geraci, the president of ETF Store, says "Degen retail has now ape’d nearly $2bil into IBIT over past 2 weeks." You should note that the SEC previously denied in-kind redemption because the agency did not want to provide regulatory clarity for licensed broker-dealers to deal in Bitcoin. The SEC originally forced issuers to buy assets to cordon off products from illicit BTC sources.
| ETF Name | July 2 Inflow | First Year Net Inflow |
|---|---|---|
| IBIT | $138.9 million | $52.3 billion |
| FBTC | $183.96 million | $19.7 billion |
| ARKB | $83 million | N/A |
| BITB | $64.94 million | N/A |
Fidelity’s catch-up sprint
Bitcoin ETFs recorded a net inflow of $408 million on July 2. This surge reversed the previous day of outflows. While BlackRock’s IBIT remains the dominant force in the market, Fidelity’s FBTC managed to lead the July 2 inflow surge with $183.96 million, demonstrating that the competition for Bitcoin exposure remains fierce among major asset managers. Fidelity’s FBTC also drew $166 million as the July reversal began. Other contributors to the $408 million surge included $83 million from ARK 21Shares’ ARKB, $64.94 million from Bitwise’s BITB, $34.56 million from Grayscale’s GBTC, $16.53 million from Grayscale Bitcoin Mini Trust, $9.85 million from Invesco’s BTCO, $9.51 million from Franklin’s EZBC, and $5.42 million from VanEck’s HODL. Fidelity’s FBTC secured the number 9 spot for net inflows in its first year with $19.7 billion. IBIT held the number 3 spot globally for net inflows with $52.3 billion. This momentum comes as Bitcoin trades near $68,000, which is 8% below its all-time high of $73,000. Total Bitcoin ETF assets reached $136.68 billion, or 6.3 percent of Bitcoin’s total market capitalization. This surge follows a period where Ethereum ETFs saw $1.82 million in outflows, including a $46.89 million withdrawal from BlackRock’s ETHA.
The Coinbase effect
The in-kind amendment for IBIT requires Coinbase Custody to process Bitcoin withdrawals to a public blockchain address within 12 hours of receiving instructions. This requirement aims to increase liquidity. It also reduces the risk of holding paper BTC or derivatives. MartyParty, a crypto commentator, says this change increases the operational demands on Coinbase. This rule change might improve investor confidence by ensuring the cryptocurrency is available and not just represented by financial instruments. This shift could also impact the Coinbase institutional lending platform by creating a more direct link between lending activities and actual Bitcoin held in custody. I find the heavy reliance on "degen retail" to drive $2 billion in inflows over two weeks to be an unstable foundation for a $23.5 billion fund. IBIT currently holds 734,354 BTC, which has a value of approximately $47.5 billion. BlackRock clients purchased $80 million in Bitcoin via IBIT on July 15, 2026. This follows a $250 million Bitcoin accumulation by BlackRock earlier in the same month. The crypto market also sees significant political activity, as crypto donations in this US election topped $190 million. The total Bitcoin market capitalization is $136.68 billion, while Solana holds a market capitalization of $82 billion. Will the SEC extend this expedited approval process to Solana or other altcoin products?
