Original author: Chandler, Foresight News
As the price of Bitcoin continues to rise, its appeal gradually shifts from retail investors to large institutions with strong funds and resources. Unlike the previous bull market, where the prosperity of the ecosystem and the entry of institutions became the core driving force behind the surge in prices, in this round of market conditions, the in-depth layout of institutions has become an important variable in promoting market development. From the successful approval of spot ETFs to the frequent increase in positions by traditional financial giants and professional asset management institutions, institutionalization is reshaping the landscape of the Bitcoin market.
During this process, the investment logic of Bitcoin has also quietly changed - from a mere speculative asset chasing price fluctuations to a long-term allocation tool with asset diversification and anti-inflation characteristics. At the same time, the changes in positions and profits of major institutions have also attracted market attention: Who is constantly adding to Bitcoin? Which institutions have reaped significant returns from this rally? Do changes in position size have a significant impact on market prices? This article will focus on the position holdings of several top-ranked institutions.
Bitcoin Institutional Holdings Overview: ETFs Become Market Dominant Force
According to data from BitcoinTreasuries.com, as of November 18, 2024, 92 entities (including companies and countries) publicly hold nearly 2.718 million Bitcoin, accounting for 12.94% of the total Bitcoin supply. It can be seen that as Bitcoin is gradually regarded as 'digital gold,' institutional investments in Bitcoin are not only a response to price fluctuations but also part of a long-term plan for asset diversification and inflation hedging.
Overview of Bitcoin Institutional Holdings:
The most noteworthy aspect is the proportion of Bitcoin ETFs, which have a holding amount accounting for 5.82% of the total Bitcoin supply. Since the launch of the U.S. Bitcoin spot ETF in January 2024, it has accelerated the process of traditional institutions encroaching on Bitcoin market share.
ETF Competition: BlackRock Leads, Grayscale Strategic Adjustment to Diversified Layout
Bitcoin ETFs provide investors with a convenient way to invest in Bitcoin, especially the Bitcoin spot ETF in the United States, which has attracted a lot of attention as an emerging market tool. Since its launch in 2021, ProShares Bitcoin Futures ETF has shown some capital inflow, but there is a significant gap between it and the Bitcoin spot price, mainly influenced by futures market volatility. In January 2024, the first Bitcoin spot ETF in the U.S. was officially approved, marking a new phase for Bitcoin investment.
With the launch of Bitcoin spot ETFs, institutional investors' participation has become more active, especially in the ETF holding structure, where the performance of leading institutions is particularly noteworthy.
Top 10 Bitcoin ETF Holdings:
BlackRock's iShares Bitcoin Trust (IBIT: NASDAQ) firmly holds the top spot in Bitcoin ETF 'fund-raising rankings.' Since starting to hold Bitcoin on January 11, 2024, the trust's Bitcoin holdings have continued to increase. As of November 2024, the total amount of Bitcoin held by iShares Bitcoin Trust has reached 471,000 coins, with a market value exceeding $4.3 billion, accounting for 2.24% of the total Bitcoin supply.
According to iShares' purchase history, BlackRock increased its Bitcoin holdings by more than 1,400 and 2,500 coins in October and November 2024, respectively, adding nearly 15,000 coins in just a few months. Based on the market price of around $30,000 for Bitcoin at the beginning of 2024, BlackRock's cost for increasing its Bitcoin holdings was approximately $30,000 per coin. Currently, with Bitcoin prices nearing $91,000, BlackRock's holdings have achieved nearly double the return, with cumulative profits of about $2.1 billion.
In addition to the Bitcoin market, BlackRock's layout in the digital asset field is also continuously deepening. In March 2024, BlackRock partnered with Securitize to launch the tokenized fund BUIDL to expand its influence in the Web3 field. Furthermore, BlackRock is also promoting the launch of Ethereum ETFs, further strengthening its strategic layout in the digital asset investment field.
As an established institution in the field of cryptocurrency asset management, Grayscale has continuously reduced its Bitcoin holdings over the past year, from a peak of 654,600 coins to 218,400 coins, compared to the constant increases by traditional institution BlackRock.
For Grayscale, which has deeply cultivated cryptocurrency assets, a diversified cryptocurrency portfolio may have a larger profit margin. Over the past year, Grayscale has significantly adjusted its investment strategy, accelerating the diversification of its cryptocurrency asset layout. Grayscale currently manages trust funds for 14 cryptocurrency assets, including Bitcoin, covering multiple digital currencies such as Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). In addition, Grayscale has launched three major sector funds focused on different types of cryptocurrency asset investments, such as DeFi (decentralized finance), smart contract platforms, and other emerging cryptocurrency assets.
Although the primary arena for institutional investment still mainly exists overseas, the Asian market is also worthy of attention. According to data from SoSoValue, as of November 2024, Hong Kong has launched six spot ETFs, including Bosera Bitcoin ETF and Huaxia Bitcoin ETF, with the asset size of Hong Kong Bitcoin ETFs reaching $428 million.
Public Company Holdings Focus: MicroStrategy Leads by a Wide Margin
Although these public companies' Bitcoin holdings are far less than those of asset management companies, categorizing them reveals the diversified applications and strategic value of Bitcoin within institutions.
MicroStrategy leads with a holding of 331,200 Bitcoin, accounting for 1.58% of the global total, making it the benchmark for companies holding Bitcoin. U.S. companies like Marathon Digital, Riot Platforms, Hut 8, and CleanSpark represent major Bitcoin mining companies in North America, focusing on efficient and environmentally friendly mining, with Marathon holding 25,945 coins at the top of the mining company list. Cryptocurrency trading and service providers like Coinbase and Galaxy Digital hold 9,000 and 8,100 Bitcoin, respectively, while Germany's Bitcoin Group holds 3,830 Bitcoin, making it an important player in the European market.
Top 10 Public Company Holdings:
MicroStrategy (MSTR), a global business intelligence (BI) software company, seems to have become a 'Bitcoin treasure.' MicroStrategy announced in August 2020 that it invested $250 million to purchase 21,454 BTC, becoming the first publicly traded company to implement a BTC funding strategy.
Additionally, MicroStrategy announced on November 19 plans to issue $1.75 billion in 0% convertible bonds and expects to grant initial purchasers the option to purchase up to an additional $250 million in notes within three days of the initial issuance of the notes. The announcement stated that MicroStrategy intends to use the net proceeds from this issuance to purchase more Bitcoin and for general corporate purposes.
According to its announcement, MicroStrategy used funds from stock sales to purchase 51,780 Bitcoin for $4.6 billion between November 11 and 17, 2024, with an average purchase price of $88,627. As of November 18, 2024, MicroStrategy's Bitcoin holdings have reached 331,200 coins, with an average purchase cost of $49,874. Based on current market prices, the company's Bitcoin investment profit has reached 82.85%.
In addition to the leading MicroStrategy and mining companies that continuously accumulate Bitcoin through mining, other public companies are relatively cautious about Bitcoin holdings, preferring to treat it as part of a diversified asset allocation.
Elon Musk, as the founder and CEO of Tesla, has always been a focal figure in the cryptocurrency field. Tesla first announced in February 2021 that it would purchase $1.5 billion in Bitcoin and planned to support Bitcoin payments, which sparked a huge reaction in the market. Despite suspending Bitcoin payments in May of the same year due to environmental controversies, the company did not completely sell off its holdings, only selling 4,320 coins in March 2021 and further reducing its holdings by 29,160 coins in June 2022, after which it maintained its holdings.
As of November 18, 2024, Tesla still holds 9,720 Bitcoin, with a current market value of approximately $914 million.
Institutionalization Drives Long-Term Value Recognition of Bitcoin
In general, the long-term bullish sentiment of institutions towards Bitcoin as a cryptocurrency asset is becoming increasingly clear. As large institutions like BlackRock and Grayscale continue to increase their Bitcoin holdings and strengthen their strategic deployments in Web3, Ethereum, and other areas through diversified digital asset layouts, Bitcoin is expected to occupy a more solid position in global asset allocation in the future.
Although the trend of concentration in Bitcoin holdings may pose certain challenges to Bitcoin's decentralized characteristics, it is not necessarily negative. On the contrary, with the participation of large institutions and enterprises, the Bitcoin market is expected to gain greater recognition and support, continuing to play an important role in the global financial system.
On the one hand, the participation of large financial institutions and enterprises brings more trust and stability to the Bitcoin market. The deep involvement of these institutions reflects their confidence in Bitcoin's long-term value, further driving Bitcoin's acceptance and adoption globally. This trend can provide strong support for Bitcoin prices while also increasing market liquidity, attracting more investors into the market. On the other hand, despite the increase in concentration of holdings, the decentralized network structure of Bitcoin remains solid. Countless distributed nodes worldwide ensure the independence and risk resistance of the Bitcoin network. The participation of large institutions helps to promote the development of Bitcoin technology and enhance network security, further consolidating its status as digital gold.
In addition, from the perspective of industry development, the deep participation of institutions can establish Bitcoin as a benchmark for legitimate investment tools to a certain extent, while also promoting market maturity and stability. This trend may drive a more proactive regulatory attitude, creating favorable conditions for the compliance and legalization of the digital asset market, and prompting the entire industry to develop in a more robust direction.
