IBIT Now Holds More Bitcoin Than Major Exchanges

BlackRock’s iShares Bitcoin Trust (IBIT) has overtaken Coinbase and Binance as the largest visible custodian of Bitcoin. IBIT’s balance has surged to ~745,000 BTC, surpassing Coinbase at ~706,000 BTC and Binance at ~585,000 BTC.

The same trend is playing out in Ether. BlackRock’s iShares Ethereum ETF now holds ~3.6 million ETH, only about 200,000 ETH behind Coinbase’s 3.8 million. At its current accumulation rate, IBIT could surpass Coinbase by the end of 2025, leaving Binance as the last exchange holding more ETH.

The Custody Leaderboard Is Changing

The shift reflects a structural move from exchange-based custody to regulated ETF wrappers:

• Binance: still leads ETH with 4.7M ETH, up from 2.5M in 2019.
• Coinbase: once the top ETH custodian at 8M in 2019, now at 3.8M ETH (down 52% in six years).
• BlackRock: rising rapidly, poised to overtake Coinbase, reinforcing ETF demand as the new institutional standard.

Large investors increasingly prefer ETFs with audits, disclosures, and board oversight over opaque exchange balances used for trading or withdrawals.

On-Chain Data Confirms the Shift

Exchange inflows are shrinking, signaling lighter sell pressure and stronger off-exchange accumulation:

• BTC exchange deposits (30-day average): lowest since May 2023.
• ETH inflows (30-day average): dropped to April lows of ~25 ETH/day, despite ETH trading near $4,600.

This suggests coins are flowing into long-term, regulated custody instead of exchanges.

ETF Flows Driving Demand

ETF flow tapes highlight the new accumulation hubs:

• Ether ETFs: over $1.5B net inflows since last Thursday, including $450M in one day.
• Bitcoin ETFs: saw $1.17B outflows last week, but regained traction with $310M inflows across the past two sessions.

This combination—shrinking exchange supply + steady ETF buying—tightens liquid supply and supports upside potential if macro conditions stabilize.

Why It Matters

If BlackRock’s ETH ETF overtakes Coinbase, it would mark the first time a traditional asset manager dominates custody of both BTC and ETH.

Implications:

• Liquidity migration: Price discovery shifts from exchanges to ETF flows and capital markets desks.
• Lower volatility: ETF demand can absorb supply shocks, dampening swings.
• Concentration risk: A single issuer holding massive coin reserves increases systemic dependence.

Bottom Line

BlackRock has already surpassed Coinbase and Binance in Bitcoin custody and is closing in on Coinbase’s Ether reserves.

With exchange inflows drying up and ETF demand accelerating, the center of gravity in crypto markets is tilting toward regulated funds. The next phase of BTC and ETH price structure will increasingly be steered not by exchange balances, but by institutional ETF flows and capital markets behavior.