Nakamoto may no longer hold the most Bitcoin as ETFs quickly accumulate more.
BlackRock's BTC holdings are set to surpass Nakamoto's within the next few months.
Institutional investors are becoming dominant in the token's ownership, reshaping the market environment.
The mysterious Bitcoin founder is expected to lose his position as the largest BTC holder by year’s end. U.S.-based exchange-traded funds (ETFs) have rapidly accumulated substantial amounts of the coin, almost matching his claimed 1.1 million tokens. According to Eric Balchunas, a senior ETF analyst at Bloomberg, these funds are on track to surpass Nakamoto's holdings soon, signaling a shift in top crypto title ownership.
https://twitter.com/EricBalchunas/status/1823080660765900805
Interestingly, Fidelity’s FBTC fund and Grayscale’s Trust also contribute to this trend. Fidelity holds 176,626 BTC, while Grayscale controls 263,801 coins. Consequently, institutional control over crypto is increasing, raising questions about its potential impact on market stability.
Institutional Influence and Strategic Investments
Additionally, BlackRock’s influence extends beyond mere accumulation of Bitcoin. The company manages around $10 trillion in investments, with significant allocations to various crypto assets, stablecoins, and tokenized assets. Its iShares Bitcoin ETF, which manages close to $21 billion, reflects BlackRock’s deep involvement in the crypto space.
Furthermore, in 2022, the company partnered with Circle to invest in the Circle Reserve Fund through USDC reserves. At the same time, BlackRock acquired a stake in storage, which is a blockchain company handling digital assets such as tokenized money market funds. Consequently, the strategic investments are further solidifying its position in the digital asset ecosystem.
The Debate Around Nakamoto’s Bitcoin
However, Satoshi's vast BTC holdings remain a topic of debate and concern within the cryptocurrency community. While he is widely believed to hold 1.1 million BTC, BitMEX Research suggests this figure may be overstated. Their analysis indicates that a dominant miner, potentially Satoshi, could have mined only 700,000 coins. Hence, the exact amount he holds remains uncertain, but it is undeniably important.
Moreover, the coins associated with Nakamoto have not moved for over a decade, which leads to some concern about the potential impact on the market if these coins are ever sold. There are theories that a dead man’s switch could trigger the liquidation of these assets under certain conditions, which could have a profound effect on Bitcoin’s market value.
The post Satoshi Nakamoto Set to Lose Top Spot as Largest Bitcoin Holder appeared first on Crypto News Land.
