Recent reports from various agencies indicate that major identified entities collectively hold approximately 4.23 million bitcoins, accounting for over 27% of the adjusted circulating supply. This significant concentration of BTC ownership underscores the crucial role these entities play in the Bitcoin ecosystem.
Institutional Holdings: ETFs, Miners, Government, and Exchanges Hold 4.23 Million Bitcoins
According to the latest research by experts, U.S. spot Bitcoin exchange-traded funds (ETFs) are among the largest holders, controlling a balance of 862,000 BTC. Following them are the U.S. government and the Mt. Gox Trust with 207,000 BTC and 141,000 BTC, respectively. Additionally, exchanges collectively hold around 2.3 million BTC, while miners, excluding Satoshi Nakamoto, have a balance of 706,000 BTC.
The Impact of “Spot-Futures” Strategy on the ETF Market
The report highlights the dynamics in the ETF market, noting that the “spot-futures” trading structure significantly influences the inflow of funds into ETFs. This strategy, involving a long position through ETFs and a short position in CME Group futures, has led to a stable open interest above $8 billion in CME futures markets. Researchers suggest that hedge funds are increasingly adopting this arbitrage strategy, contributing to the sustained demand for Bitcoin ETFs.
Report: Major Entities Hold Over 4 Million Bitcoins, Accounting for 27% of the Supply Volume
The report also details recent divergences in on-chain activity metrics. While the number of active addresses has decreased, transaction volume has reached near-record highs. This divergence is attributed to the emergence of the Runes protocol, which promotes address reuse, resulting in numerous transactions from a single address. The protocol has gained popularity since its launch, displacing other token protocols like BRC20 tokens and Ordinal inscriptions, now comprising 57.2% of daily transactions.
Market Neutrality and Price Growth Prospects
Despite significant inflows into Bitcoin ETFs, market prices have remained relatively neutral, indicating that organic buying demand is necessary for further price growth. The report concludes that while institutional and on-chain activity are crucial, broader market dynamics and investor behavior will continue to shape Bitcoin’s price trajectory.
