Bitcoin ETPs Now Control Over 7% of Total Supply, BlackRock Leads Institutional Influx
**Exchange-Traded Products (ETPs)** holding **Bitcoin** have significantly increased their collective stake in the cryptocurrency, now managing more than **7%** of its total finite supply of 21 million coins. This notable accumulation highlights a growing trend of institutional adoption and investment into the digital asset space. Among these prominent investment vehicles, **BlackRock's** US-based spot **Bitcoin ETF (IBIT)** has distinguished itself as the single largest holder, underscoring its rapid ascent in the market.
Institutional Demand Drives Supply Squeeze
This milestone is particularly significant due to **Bitcoin's fixed supply cap** of 21 million, which inherently creates scarcity. The absorption of over 7% of this limited resource by institutional ETPs effectively removes a substantial portion of Bitcoin from active circulation. This phenomenon contributes to a potential **supply-side squeeze**, where increased demand from structured investment vehicles meets a diminishing accessible supply. The active participation of global financial behemoths like BlackRock through products such as IBIT not only validates Bitcoin as a legitimate **asset class** but also signals a strategic shift in how large capital allocations are being directed towards digital assets. This movement reflects a broader embrace of Bitcoin for **portfolio diversification** and long-term value preservation, moving beyond its earlier perception as a purely speculative asset. The efficiency and accessibility offered by regulated ETPs are clearly attracting significant capital flows, indicating a deeper integration of cryptocurrency into traditional finance.