BlackRock is actively increasing its Ether holdings, potentially becoming the second largest custodian of the cryptocurrency in the world, surpassing Coinbase.
Current Positions of BlackRock and Coinbase
BlackRock's iShares Ethereum ETF currently holds 3.6 million ETH, just 200,000 ETH behind Coinbase. Over the past two months, BlackRock has added 1.2 million ETH to its holdings. If this pace continues, BlackRock may surpass Coinbase by year-end and reduce Binance's dominance to just 1.1 million ETH.
Market Trends
Data indicates a significant shift in custody trends. Binance still leads with 4.7 million ETH, although growth has consolidated. Coinbase, once the largest custodian with over 8 million ETH in 2019, has seen its reserves fall to 3.8 million ETH, marking a 52% decline over six years.
Dynamics of Bitcoin and Ether Inflows
CryptoQuant data shows that the 30-day moving average of BTC inflows has dropped to its lowest since May 2023, coinciding with BTC trading around $111,000. Ether inflows are similarly declining, indicating reluctance among investors to sell, which reinforces confidence in current market positioning. Meanwhile, ETF flows demonstrate high interest in Ether, with over $1.5 billion in net inflows since last week.
The increase in BlackRock's holdings and decreasing inflows of cryptocurrencies to exchanges indicate a tightening supply backdrop for both BTC and ETH, which may lead to further price growth.
