BlackRock’s $24 billion Bitcoin initiative is enhancing BTC liquidity with an 800% increase.

BlackRock’s iShares Bitcoin Trust has recorded $23.8 billion in net inflows this year, while the firm’s tokenized U.S. Treasury fund, BUIDL, has grown by approximately 800 percent over the past 18 months.

IBIT’s total for 2025 positions it among the leading asset gatherers in the ETF sector. Daily flow metrics remain the quickest method to assess whether that demand is increasing or decreasing during U.S. trading hours, where Bitcoin market depth has become concentrated since the launch of spot ETFs.

The pressing inquiry is how ongoing ETF allocations interact with Bitcoin’s issuance following the halving. The current supply is close to 450 BTC daily, reflecting 3.125 BTC per block at around 144 blocks each day. This issuance has constrained the supply side to a narrow trickle in comparison to substantial capital flows.

With $24 billion arriving over approximately 275 days, the run rate is about $87 million each day.

At a price of $90,000 per BTC, this translates to roughly 970 BTC of implied daily demand; at $120,000, it is about 725 BTC per day, and at $130,000, around 670 BTC per day.

Even at the higher price levels, IBIT’s 2025 average remains above new issuance, not accounting for flows into other spot ETFs that also draw coins from the same circulating supply pool.

Price per BTC	IBIT inflow/day	Implied BTC/day	New supply/day	Coverage ratio (BTC demand ÷ supply)
$90,000	$87,000,000	~970	~450	~2.2×
$120,000	$87,000,000	~725	~450	~1.6×
$130,000	$87,000,000	~670	~450	~1.5×

Flow is not the sole factor influencing returns, and daily market activity can diverge from a straightforward supply-absorption model.

The statistical correlation between daily ETF net flows and Bitcoin returns is moderate, with an R² value close to 0.32. Liquidity has shifted toward U.S. hours as market depth on U.S. platforms increased following ETF approval.

This trend clarifies why the spot market and spreads often react most rapidly around the Wall Street close, when flow data is released and market makers adjust their positions. It also emphasizes the risk profile on reversal days.

IBIT has experienced significant outflows at various points this year, and those periods have corresponded with wider spreads and thinner order books, even as the overall trend has indicated accumulation. This context maintains the emphasis on variance rather than just averages.

BUIDL complements this dynamic by placing short-duration Treasurys on-chain for KYC-verified holders.

BUIDL surpassed $1 billion in assets less than a year after its launch. The addition of further share classes on different chains introduced lower-latency pathways to a tokenized cash account structure that already existed on Ethereum, driving assets close to $3 billion.

This growth represents approximately 800 percent over the initial 18 months.

BUIDL holders can convert shares to USDC through a smart contract-based mechanism that operates as a 24/7 off-ramp outside the primary creation and redemption cycle. This strengthens the fiat-to-on-chain dollar connection and provides market participants with a quicker settlement option for collateral management and liquidity reserves.

This connection is significant on rebalance dates, during margin calls, and when ETF flow surprises necessitate rapid hedging.

The macro backdrop frames the yield leg of tokenized cash.

Front-end rates have decreased from their peaks but remain positive in nominal terms, and the 3-month Treasury yield continues to stabilize within a range that makes tokenized T-bill products attractive as a treasury management tool for firms operating around the clock in the crypto space.

If the 10-year yield trends lower while policy expectations stabilize, the carry on tokenized bills remains competitive compared to on-exchange cash balances that do not accrue interest, which can support consistent subscriptions even without price-sensitive inflow surges.

The funds’ mechanics still involve operational gates and best-efforts windows during periods of stress, as noted in public communications by tokenization platforms, so intraday liquidity should not be regarded as unlimited.

Spot ETF demand has also exhibited surges beyond the average. Global spot ETF holdings increased by approximately 20,685 BTC in mid-September, marking the strongest weekly growth since early summer, raising U.S. spot ETF holdings to around 1.32 million BTC.

This increase coincided with renewed focus on distribution platforms and model portfolios, along with the growing use of futures basis and options overlays to manage basis risk against ETF creations and redemptions.

The enhancement in U.S. trading hour depth introduces a microstructure channel through which these allocations interact with the order book, centralizing liquidity when U.S. advisors, RIAs, and funds rebalance.

In the broader context, tokenization forecasts help define the potential for on-chain dollar rails. According to Citi’s GPS series, tokenized assets could reach approximately $4 to $5 trillion by 2030, with stablecoins as an asset class potentially reaching up to about $4 trillion in market value by that time.

A separate analysis by BCG and ADDX suggests a higher ceiling in the mid-teens trillions. These estimates are not base cases for the upcoming year; they serve as a framework for considering what portion of institutional cash and collateral might transition to tokenized instruments that work in conjunction with crypto exchange infrastructure.

If BUIDL and similar vehicles grow into the low billions over the next four quarters, even a few billion dollars of additional on-chain cash that can shift between venues in minutes rather than days will alter how market makers manage risk around ETF prints.

A simple set of 2025 scenarios helps frame the next leg.

A mid-year forecast estimated total spot Bitcoin ETF net inflows for 2025 to be around $55 billion. This projection has been surpassed, with $59 billion already recorded by October, and at an average transaction price of $120,000, cumulative demand corresponds to roughly 458,000 BTC over a year, or about 1,250 BTC daily if linearized, still significantly above new issuance.

A weaker year that concludes between $25 and $35 billion due to outflows would still maintain the structural demand near or above issuance at various price points. Conversely, a stronger distribution effort that elevates totals into the $70 to $85 billion range would greatly exceed issuance unless long-term holders decide to distribute.

None of these scenarios necessitate extrapolating parabolic movements; they merely convert reported and anticipated dollar flows into coin equivalents and compare them to the established issuance trajectory.

The loop between IBIT and BUIDL is mechanical, not narrative.

ETF allocations introduce regulated capital into Bitcoin through standard brokerage channels, increasing the pool of coins held off exchanges and altering inventory levels.

With USDC off-ramps and multi-chain capabilities, tokenized cash accounts enable institutions to transfer dollars within crypto’s settlement cycle without departing from treasury-grade instruments.

As these systems expand, spreads and market depth receive more support during U.S. hours, making the rebalancing around the daily flow tape more seamless. According to Kaiko, this concentration effect is already evident in order book data, aligning with findings from SoSoValue and Farside regarding flow dynamics.

There are caveats. Flow cycles fluctuate, and Kaiko’s correlation analysis indicates that a significant inflow does not guarantee a corresponding return on the same day.

Outflow events have also occurred, meaning coverage ratios in the table above can compress rapidly when the trend reverses. Operational windows on tokenized funds may tighten during periods of stress, which limits instant convertibility until capacity is restored.

These frictions do not negate the structural changes; they establish operational parameters for treasury desks and trading teams adapting to a market where regulated ETFs and tokenized short-duration instruments now facilitate liquidity with fewer intermediaries.

The flywheel concept does not require a dramatic assertion about inevitability.

It suffices to observe that a significant regulated buyer has already acquired nearly $60 billion in Bitcoin this year.

Simultaneously, a tokenized cash account from the same asset manager has reached the low billions in assets with a programmatic USDC bridge.

The next data point will be available with Monday’s weekly ETF flow update.

The post BlackRock’s $24 billion Bitcoin flywheel is moving BTC liquidity with 800% growth appeared first on CryptoSlate.