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Crypto Potato 2024-12-24 04:29:51

Institutional Bitcoin Holdings Surge to 31%: ETFs, Governments, MicroStrategy Lead the Charge

Institutional investors now account for 31% of all known Bitcoin (BTC) holders, reflecting a sharp increase from 14% in 2023. The uptick has been largely driven by spot Bitcoin exchange-traded funds (ETFs), government acquisitions, and MicroStrategy’s ramping up of its BTC strategy, which has seen its stash grow to over 440,000 BTC. ETFs, MicroStrategy, Drive Institutional Inflows According to statistics shared by CryptoQuant CEO Ki Young Ju, most of the known Bitcoin holdings are in the hands of miners and crypto exchanges. However, MicroStrategy, ETFs, and several governments have eaten into their shares. Launched earlier in the year, spot BTC ETFs have seen billions of dollars in inflows from traditional financial institutions, with the likes of BlackRock’s iShares recording a staggering $1.4 billion in net weekly inflows as of mid-December. Collectively, data shows the sector accounts for more than 1.3 million BTC, valued at an eye-popping $124.89 billion. MicroStrategy is also a major holder of the number one cryptocurrency. Its treasury, consisting of roughly 2% of BTC’s circulating supply, is worth $46.15 billion. The company has bought the cryptocurrency several times in the last few years, breaking the record for the biggest monthly purchase in November when it acquired 134,480 BTC in three successive tranches of 27,200, 51,780, and 55,500. The Virginia-based firm’s success has spawned several copycats, including Japanese company Metaplanet, which just bought another 619.70 BTC to bring its total holdings to 1,761.98 BTC worth nearly $170 million. Other private entities holding Bitcoin include Block.one, with 164,000 units of the asset, stablecoin issuer Tether, which has 82,454 BTC according to Bitcoin Treasuries, and Elon Musk’s SpaceX, with 8,285 BTC valued at nearly $796 million. Defunct crypto exchange Mt. Gox also maintains a sizable chest of the virtual asset, numbering 44,899. Governments as Major Gateways The U.S. leads the pack among governments, with 198,109 BTC worth an estimated $19 billion in its care. Many came from the Silk Road, an infamous online black market known for facilitating the sale of drugs and other illegal goods and services. To maintain the anonymity of its users, the platform employed BTC as its primary currency, of which thousands were seized by law enforcement after they shut down the website and arrested its founder, Ross Ulbricht . Despite an existing ban on crypto, China also boasts an impressive Bitcoin haul of about 190,000. The Kingdom of Bhutan is another major holder. Its treasury, derived from mining, has 11,688 BTC, currently valued at $1.12 billion. El Salvador, which became the first country in the world to adopt Bitcoin as legal tender, boasts nearly 6,000 coins, much of it accrued under President Nayib Bukele’s Bitcoin per day policy. In total, about 2.45% of the cryptocurrency’s circulating supply, valued at $49.36 billion, is controlled by states. The post Institutional Bitcoin Holdings Surge to 31%: ETFs, Governments, MicroStrategy Lead the Charge appeared first on CryptoPotato .

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