Listed companies, trusts and ETPs now control almost 7% of the Bitcoin supply

While Bitcoin (BTC) is the biggest, most well-known cryptocurrency, it isn’t the only one out there. As of December 2018, there are over 1,000 different cryptocurrencies available on the market. Each of these cryptocurrencies has its own unique features, and some have even more unique characteristics. We can now reveal that listed companies, trusts and ETPs now control almost 7% of the Bitcoin supply.

Register now on Binance, add 50$ and get 100$ bonus voucher!

The recent analysis by the Bitcoin Investment Trust suggests that a majority of the Bitcoin supply is now controlled by a small group of players. The implications of this analysis are that it will be significantly more difficult to sell off the bitcoin reserves held by the BTCT, and will likely lead to a decline in the price of bitcoin.

More than $6.5 billion worth of BTC — or close to 1% of the crypto asset’s entire capitalization — is held by 19 publicly-listed companies. A further 5.75% of Bitcoin’s market cap is held by exchange-traded products and closed-ended trusts. The figures are contained in a new study by Nickel Digital Asset Management. The 19 firms cited are worth a combined market cap of more than $1 trillion, with 13 based in North America, three domiciled in Europe, and the remainder in Turkey, Hong Kong, and Australia. Seventeen other listed companies have purchased BTC, however details regarding their allocations are not available. The study shows that institutional adoption of crypto is on the rise, with eight listed companies purchasing Bitcoin during the first four months of 2021 compared to seven during all of 2020. Beyond the treasuries of listed firms, the study identified that $43.2 billion worth of BTC — equivalent to nearly 6% of Bitcoin’s market cap — is held by ETPs and trusts. In Hedgeweek, Nickel’s CEO and co-founder, Anatoly Crachilov argued that a combination of the COVID-19 crisis and expansionary monetary policies from central banks has heightened the risk of currency debasement, adding: “This, coupled with the increasingly inflationary guidance by Fed and an ever-expanding pile of US $18 trillion of negatively yielding global bonds, has encouraged many corporations to contemplate an allocation to alternative assets.” Research from Nickel carried out earlier in the year, prior to the recent downturn, suggests institutional crypto allocations will continue to grow, with 81% of European wealth managers and institutional investors indicating they expect to see an increase in Bitcoin held among corporate reserves. Crachilov asserted the growing trend of institutions allocating Bitcoin to their treasuries will tame crypto’s price volatility over time. “Increasing allocations by large-scale institutional and corporate players is expected to lead to a reduction of this volatility over time, thanks to a longer-term, stickier type of capital brought by those investors, as well as a much larger liquidity pool of crypto ecosystem,” he said. However, not everyone agrees that institutions are champing at the bit to gain exposure to crypto, with JPMorgan analyst, Nikolaos Panigirtzoglou asserting the recent premium observed in the spot markets over futures prices indicates institutional demand is waning. According to BitcoinTreasuries, a further $13.5 billion worth of BTC (1.8% of Bitcoin’s supply) is held in the treasuries of four private companies — Block.One, The Tezos Foundation, Mt Gox, and Stone Ridge Holdings Group. The website also estimates the government of Bulgaria is sitting on roughly $8.5 billion worth of Bitcoin, while Ukraine’s government hotels $1.8 billion in BTC.

Related Tags:

bitcoin etp vs bitcoin,is bitcoin etp the same as bitcoin,is bitcoin etp a good investment,bitcoin etp explained,bitcoin etp prediction,bitcoin etp forecast,bitcoin etp price,bitcoin etp shares

Register now on Binance, add 50$ and get 100$ bonus voucher!

Recent Articles

Tonga accepts Bitcoin donations amid tsunami onslaught

A small island of Tonga has been hit by a tsunami, and the country is calling for donations in Bitcoin. The nation’s Prime Minister...

How to Buy Solana (SOL) in India

It is important to know how you can buy SOL in India. It’s no secret that the Indian market has only recently begun to...

How to Buy Flow (FLOW) in India

Flow is a cryptocurrency that was introduced in June 2018. It uses the Ethereum blockchain platform, but has its own built-in digital currency called...

Moonbeam Goes Live on Polkadot, Becomes its First Fully Operational Parachain

Moonbeam, the world’s first fully operational on chain scaling solution was released into the wild this week. The Polkadot-powered platform aims to provide scalability...

Stacks ecosystem becomes #1 Web3 project on Bitcoin

The Ethereum blockchain, which powers the Stacks ecosystem’s token STX, has become the most important web3 project on Bitcoin. The announcement is a sign...

Related Stories