Institutional Influx: Over 1 Million BTC Now Held by ETFs
Since the approval of US spot Bitcoin ETFs in January 2024, the landscape has changed dramatically. As of late July 2025, the eleven US-listed Bitcoin ETFs collectively hold over 1,030,000 BTC, more than 5.2% of the circulating supply. BlackRock’s IBIT dominates, capturing more than half of all ETF inflows, while Grayscale’s GBTC continues to see net outflows.
ETF demand now vastly exceeds the monthly net issuance of new BTC. Miners can currently produce only about 13,600 BTC per month (about 450 per day), yet ETFs alone acquired over 4,950 BTC in the week ending July 29, 2025, according to CoinShares. The supply-demand imbalance is growing sharper by the month.
OTC Markets: The Hidden Engine of Institutional Accumulation
While ETF flows grab headlines, OTC (Over-the-Counter) trading desks have quietly become the backbone of institutional Bitcoin allocation. According to Wintermute’s H1 2025 OTC Market Review, OTC volumes were 2.4x higher than those on centralized exchanges in the first half of 2025. Options activity exploded—up 413% year-over-year—and 96% of institutional orders focused on BTC, ETH, and stablecoins.
Meanwhile, retail investors rotate into altcoins while TradFi sticks to blue chips. Many crypto-native players are exiting or moving capital to stablecoins, while institutional players take control of liquidity, especially via non-public order flows.
On-Chain Data: Shrinking Miner Reserves, Changing Hodler Patterns
Blockchain analytics confirm a tectonic shift: Miner reserves are in a multi-year downtrend, according to CryptoQuant. July saw several outlier days with over 15,000 BTC in daily miner outflows—clear signs of strategic profit-taking. Illiquid holdings are rising, and exchange balances keep hitting new lows. Bitcoin is moving into “strong hands”—mainly institutional and long-term investors.
From ETF Approval to Supply Squeeze: 153% Rally in 18 Months
The numbers are striking: On January 10, 2024—the day of SEC ETF approval—Bitcoin traded at $46,700. Today, just 18 months later, it stands above $118,000, up 153%. ETFs and OTC desks have become relentless buyers, outpacing new issuance and steadily depleting available liquidity.
Bitcoin: The New Institutional Asset
The era of institutional dominance is here. ETFs, OTC desks, and funds are not only absorbing new supply but are actively transforming Bitcoin into a “traditional” asset class—marked by strategic portfolio allocation, treasury management, and long-term holding. Miner reserves shrink, while hodlers become more selective and professionalized.
TradFi capital isn’t just shaping price—it’s reshaping the entire structure and psychology of the Bitcoin market. The debate is no longer about whether institutions control the market, but how scarce Bitcoin’s supply could become in this new era of institutional demand.