Institutions and Governments Now Control One-Third of Known Bitcoin Holdings

Roughly one-third of all publicly known Bitcoin holdings are now controlled by exchange-traded funds (ETFs), governments, and MicroStrategy, reflecting a significant shift in ownership dynamics.

This figure represents a notable increase from just 14% in December 2023, according to data shared by Ki Young Ju, founder of the crypto analytics firm CryptoQuant.

Ju emphasized the pivotal role MicroStrategy plays in the Bitcoin ecosystem, highlighting the company’s strategic position as a bridge between traditional finance and cryptocurrency. He pointed out that MicroStrategy effectively acts as a gateway for institutional money, particularly from Nasdaq-100 investors, into Bitcoin.

He also addressed the skepticism some Bitcoin enthusiasts have toward MicroStrategy’s approach, which includes concerns over self-custody. Ju noted that while many Bitcoin advocates prioritize decentralization and privacy, only a small fraction actively practice self-custody.

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MicroStrategy’s “Bitcoin bank” model, he argued, aligns with the current state of adoption by offering a managed approach to accumulating and holding Bitcoin.

Ju further explained that if MicroStrategy’s active management strategy allows it to acquire significant Bitcoin holdings with relatively modest capital investments, it could validate the concept of a “Bitcoin bank.” However, he cautioned that, like any financial strategy, there are inherent risks, and investors should approach it as they would trust in a traditional banking model, using Bitcoin itself as the underlying currency.

Alexander Stefanov