- BlackRock and Fidelity now control most U.S. Bitcoin ETFs, showing that Wall Street giants are shaping the future of crypto investing.
- Bitcoin’s price still rises and falls in line with demand growth, proving that ETF accumulation plays a huge role in market direction.
- Grayscale’s fall and BlackRock’s rise mark a major power shift in Bitcoin ETFs, highlighting how quickly the crypto market can change.
U.S. Bitcoin spot ETFs have reached a historic peak, hitting 1.25 million BTC in holdings as of August 17, 2025. This milestone highlights surging institutional confidence, primarily led by BlackRock and Fidelity. Their aggressive accumulation reshaped the Bitcoin ETF landscape, creating urgency among market participants who now closely track these fund flows.
BlackRock and Fidelity Take the Lead
BlackRock’s iShares Bitcoin Trust (IBIT) dominates with 748,968 BTC, equal to 59.9% of all U.S. spot ETF holdings. Fidelity’s FBTC follows with 199,798 BTC. Together, these two giants now control over 75% of total ETF Bitcoin. Consequently, their influence outweighs all competitors, driving institutional market structure into a new era.
Moreover, this rapid concentration signals a structural shift. Grayscale’s GBTC, once the undisputed leader with more than 620,000 BTC, has now dropped to 180,576 BTC. Hence, the market narrative shifted away from tracking GBTC’s outflows. Instead, attention firmly rests on BlackRock and Fidelity’s relentless accumulation, which has become the central driver of ETF-related demand.
Demand Dynamics Shape Market Direction
Additionally, analysts emphasize the role of demand growth in dictating Bitcoin’s price. CryptoQuant’s Julio Moreno explained that Bitcoin’s apparent demand, measured through on-chain flows, directly reflects ETF and corporate purchases. His analysis shows that positive demand coincides with price rallies, while negative demand often precedes corrections.
The apparent demand chart, tracking September 2024 to August 2025, clearly demonstrates this pattern. Green spikes in demand align with price surges, while red declines match price drops.
Source: Julio Moreno
Moreover, the demand growth chart highlights ETF and strategy-driven demand as key fuel for market strength. Bitcoin’s price rises sharply whenever ETF demand accelerates, showing a strong correlation between accumulation and valuation.
However, current demand growth shows signs of slowing. Consequently, the recent pause in Bitcoin’s rally reflects this cooling pace, even as ETF holdings remain historically high.
