Bitwise Investments shows individual investors' dominance in Bitcoin ownership, contrasts the belief that BTC is an institutionally controlled asset.
The financial services firm opines that governments seeking Bitcoin must purchase from individuals willing to liquidate their balances.
Bitwise wades into the ownership dynamic around Bitcoin to shield market participants from blame for increasingly believing BTC is now an institutionally controlled asset. The report attributes the blame to the endless disclosures of institutional purchases by corporations led by Michael Saylor’s Strategy.
While the stream of reports links exchange-traded funds issuers as orchestrating the majority of BTC buys, Bitwise Investments' recent data suggest otherwise.
Individual Holders to Influence Bitcoin Price
The US-based asset manager revealed in a Monday, Feb 10 X post an excerpt of the Q4 2024 report on the digital assets market, indicating individuals held the bulk of Bitcoin at 69.4% of current supply by Dec 31. The $5 billion asset manager indicated that businesses controlled 4.4% while governments and investment funds held 1.4% and 6.1% of the supply, respectively.
Guided by the Bitcoin ownership per investor class, Bitwise stresses the essence of the numbers. Notably, the asset manager indicated that governments and companies pursuing Bitcoin would largely buy from individuals willing to sell.
The Bitwise statement is impactful since miners can only attain 5.7% of the Bitcoin supply, translating to 1.2 million coins. This data fuels the scarcity narrative of Bitcoin, particularly as nation-states and institutions accelerate their demand.
Bitcoin Ownership by Investor Type Source: Bitwise
The report discloses that Bitcoin ETFs and related investment products control 6.1% of the BTC supply. Per Bitwise account, investment products and ETFs surpass BTC held by businesses. Additionally, Satoshi holds 4.6% while 7.5% of the Bitcoin supply is lost.
How Will US States Source Bitcoin?
Warburg Serres Investments’ Tom Serres indicated that the supply dynamics prompt concerns about how those seeking to build Bitcoin treasuries will source the asset. These concerns emerge as more corporations and over a dozen US states advance in their pursuit to integrate Bitcoin into their balance sheet.
Bitwise chief Hunter Horsley observes that the Q4 data illustrates that Bitcoin price action is a preserve for the individuals holding the asset. Interestingly, Bitwise disclosure has fueled the calls to ‘hodl’ BTC. This call directs holders not to liquidate their tokens in anticipation of upward price movement.
Meanwhile, Bitcoin slipped marginally on Tuesday to extend its downtrend performance as recent trade tariffs issued by US President Donald Trump sideline crypto traders. At press time (20:17 UTC), Bitcoin slipped 2.3% in the past 24 hours to change hands at $95,179.20 per CoinGecko data.
Concerns over tariffs and Consumer Price Index (CPI) data continue to hold Bitcoin back, thus dwindling its recovery chances. Similarly, the crypto market slid 3.6% to $3.25 trillion as fears of a global trade war deepened as China and Canada announced retaliatory tariffs.
0 Comments