BlackRock’s IBIT fund has become the exclusive pillar for US Bitcoin ETF flows during 2025. Data from Farside Investors shows that without its contribution, the sector would be negative. This situation reveals a stark BlackRock’s Bitcoin ETF dominance and a worrying dependency on the financial giant.
Recent figures illustrate a marked disparity. US Bitcoin ETFs have accumulated $26.9 billion in net inflows this year. However, BlackRock’s IBIT alone attracted $28.1 billion. This means the rest of the funds, including competitors like Fidelity’s FBTC, saw net outflows. On October 27, the sector registered inflows of 1,300 BTC, equivalent to $149.3 million.
The current situation highlights a critical vulnerability for institutional adoption. The reliance on a single fund is risky. If BlackRock reduces its momentum, institutional inflows could fade quickly. Vetle Lunde, head of research at K33 Research, summarized it: “No BlackRock, no party.” This concentration shapes the perception of confidence in global finance.
Are Institutions Only Betting on Bitcoin?
Despite the concentration on Bitcoin, institutional interest is diversifying. US Ethereum ETFs also registered notable inflows of $133.9 million (32,220 ETH) on the same day. Although no ETH ETF rivals IBIT, it shows growing appetite beyond the main crypto asset. Concurrently, Bitwise data indicates that large financial companies are integrating crypto into their core operations, spanning custody and tokenization.
The crypto ETF market shows two faces. On one hand, an extreme dependency on BlackRock to sustain Bitcoin inflows. On the other, institutional adoption is quietly advancing toward other assets and services. The next wave of altcoin ETFs will be key. BlackRock’s competitors will have a golden opportunity to capture flows, although Lunde warns this might limit the sector’s overall flows.
