BlackRock’s Bitcoin ETF Now Holds Over 700,000 BTC
Key Takeaways:
- Spot Bitcoin ETFs now absorb more BTC than miners produce, intensifying market scarcity pressures.
- IBIT’s annual fee revenue exceeds that of its S&P 500 counterpart, underscoring an investor shift toward crypto.
- The launch of the first U.S. Solana staking ETF (SSK) marks a milestone in institutional access to altcoin yield strategies.
BlackRock’s iShares Bitcoin Trust (IBIT) has surpassed 700,300 BTC in holdings after a $164.6 million inflow, bringing its total assets to approximately $75.6 billion at current prices. This milestone, reached in early July 2025, solidifies BlackRock’s dominance in the U.S. spot Bitcoin ETF market, where IBIT alone controls over 55% of all holdings.
Since its launch in January 2024, IBIT has generated an impressive 82.7% return, even outperforming BlackRock’s flagship S&P 500 ETF in annual fee revenue, which now stands at an estimated $187.2 million.
Bitcoin Scarcity Grows Amid Surging Institutional Demand
Since its launch in January 2024, IBIT has generated an impressive 82.7% return, even outperforming BlackRock’s flagship S&P 500 ETF in annual fee revenue, which now stands at an estimated $187.2 million.
The supply squeeze is worsening as Bitcoin miners face shrinking profitability. In June, transaction fees plummeted to 0.96% of block rewards. The lowest level since 2022.
Meanwhile, Saylor’s Strategy expanded its Bitcoin holdings to nearly 600,000 BTC, marking 11 straight weeks of accumulation. February 2025 stands as the only month this year when institutional players turned net sellers, offloading $842 million in Bitcoin.
Altcoin Innovation: Solana Staking ETF Debuts
While Bitcoin dominates the headlines, institutional interest is also expanding into alternative cryptocurrencies, also known as altcoins. On July 2, REX Shares launched the first U.S. ETF that combines spot Solana exposure with staking rewards.
Called the REX-Osprey Solana and Staking ETF (ticker: SSK), the fund enables investors to hold SOL while earning staking yields directly, with 80% of assets allocated to Solana and approximately half of that amount staked. Its debut drew $33 million in first-day trading volume, fueling what analysts are calling “Altcoin ETF Summer.”
The debut generated over $33 million in first-day trading volume, drawing attention to what some analysts now refer to as “Altcoin ETF Summer.” Bloomberg’s Eric Balchunas noted that the fund’s unique C-Corp structure and staking component make it a breakthrough product in crypto finance.
This launch followed a May decision by the U.S. Securities and Exchange Commission, which stated that certain crypto staking doesn’t violate securities rules. That opened the door for staking ETFs to move ahead with fewer hurdles.
Now, the SEC plans to streamline crypto ETF approvals by eliminating its two-step filing process. Under the new rules, issuers would only need to file Form S-1, with ETFs automatically approved if unchallenged within 75 days.
This change could accelerate the process and provide more investors with access to a broader range of crypto options.
With ETFs now buying up more Bitcoin than miners can produce, and new products offering returns from staking, the world of digital assets is undergoing rapid change. These shifts are helping Bitcoin establish a lasting place in everyday investment strategies and demonstrate that crypto is becoming a genuine part of the future of finance.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
Related Posts
Updated Sep 26th, 2024
BlackRock Tokenized Fund Brings in Over $200 Million
Updated Sep 26th, 2024
BlackRock Head Says Bitcoin is a ‘Unique Diversifier,’ Not a ‘Risk-On’ Asset
Updated Mar 25th, 2025
Are Bitcoin ETFs Taxed?
