The K33 research report found that institutional investors bought 859.454 Bitcoins BTC in 2024. That’s equivalent to about eight years BTC issuing and 4.3% total circulating supply. Reportage.
A majority of that amount was bought by public listed companies and exchange traded funds.
In 2024, the rise of US traded spot Bitcoin ETFs was a major factor. This reflected a demand for more regulated exposure. Bitcoin investment vehicle added 561,781 BTC. US-based ETFs were the main contributors. They now control 1.4 Million BTC.
BlackRock’s Bitcoin spot ETF (IBIT) holds the Most assets managed The AUM, both in dollars as well as Bitcoins is worth almost $54 billion at the time this article was published.
Net inflows of $36.7 Billion in the first 239 days trading for spot Bitcoin ETFs was a record. The growth of spot Bitcoin ETFs was faster than gold ETFs which required over 1,500 days trading to reach similar numbers.
All Bitcoin ETFs listed in the US will have surpassed gold ETFs by year’s end, thanks to a robust Bitcoin rally, and investors who are resilient.
Turning liquid markets
The demand for Bitcoin was significantly increased by public companies in 2024. They added 297.673 BTC into their respective treasuries. MicroStrategy acquired 250,000 BTC by itself through aggressive funding strategies. This cemented its role as a major market player. Now, the company owns 439.000 BTC.
The institution appetite for Bitcoin dampened the pressure to sell that was registered in 2024. Around 230,000 BTC were derived from bankruptcies, confiscated assets and creditor payments, which included coins from Mt. Gox as well as the German Government.
These market dynamics have helped to make BTC more liquid. 22% of its circulating supply is now available on markets that are nearing their 2021 highs. BTC’s liquidity has reached an all-time peak when you consider the holdings of public companies.
These corporate holdings are also expected to continue alongside ETF flows. “sticky,”Limiting future buy-side pressure.
Bright horizon
A growing number of people are interested in the idea. “Bitcoin Strategic Reserve”In recent weeks, there has been a growing interest in BTC among legislators. Donald Trump, President elect of the US, renewed investors’ hopes that BTC would be held by the US as a hedge to inflation.
The proposed reserve is not without its challenges, both legislatively and logistically. However, its implementation may usher in a new age of Bitcoin adoption by institutions and governments.
Bhutan, El Salvador and other countries already keep Bitcoin in their Treasury. In the meantime, there were discussions in Brazil The following are some examples of how to get started: Switzerland.
The combination of this sovereign decision, improved regulatory clarity, and the increasing number of funds that are embracing Bitcoin to diversify their portfolios could boost allocations by institutions.
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