Institutional investors bought 859,454 Bitcoins (BTC) in 2024, equaling eight years of BTC issuance and 4.3% of its total circulating supply, according to a K33 Research report. Most of this amount was purchased by spot exchange-traded funds (ETFs) and publicly listed companies like MicroStrategy. The rise of US-traded spot Bitcoin ETFs played a significant role in 2024, indicating a growing demand for regulated exposure to BTC.
Bitcoin investment vehicles collectively added 561,781 BTC, with US ETFs dominating inflows. These funds now manage approximately 1.4 million BTC. BlackRock’s spot Bitcoin ETF, which went live in 2024, held the most assets under management (AUM), both in dollars and Bitcoin, with a 542,653 BTC stash valued at nearly $54 billion as of press time.
Spot Bitcoin ETFs experienced record-breaking growth in 2024, surpassing gold ETFs’ AUM accumulation within 239 trading days. Public companies also contributed significantly to Bitcoin demand, acquiring 297,673 BTC throughout the year. MicroStrategy led the way, adding nearly 250,000 BTC to its treasury via aggressive financing strategies.
As of now, it owns 439,000 BTC. The institutional appetite for Bitcoin mitigated the selling pressure seen in 2024, with approximately 230,000 BTC entering the market from various sources, including bankruptcy estates, seized assets, and creditor distributions. Despite this, the liquidity of BTC increased significantly due to corporate holdings and ETF inflows.
Experts predict that these holdings will remain “sticky,” limiting future sell-side pressure. Furthermore, ongoing discussions about “Bitcoin Strategic Reserves” among lawmakers worldwide hint at a possible new wave of institutional and sovereign Bitcoin adoption. Other countries like Bhutan and El Salvador have already started holding Bitcoin in their treasuries, while proposals for similar reserves have been made in Brazil and Switzerland.
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