Key Insights into Institutional Bitcoin Investments in 2024
Institutional Bitcoin Purchase Overview
- 859,454 Bitcoins (BTC) acquired by institutional players in 2024
- Equivalent to eight years of BTC issuance and 4.3% of total circulating supply
- Spot exchange-traded funds (ETFs) and public-listed companies like MicroStrategy were major buyers
Spot Bitcoin ETFs Dominance
- US-traded spot Bitcoin ETFs witnessed significant growth in 2024
- Reflecting a rising demand for regulated exposure to BTC
- US ETFs collectively manage 1.4 million BTC
BlackRock’s Leading Position
- BlackRock’s spot Bitcoin ETF IBIT holds the most assets under management
- 542,653 BTC stash valued at nearly $54 billion
- Record-breaking net inflows of $36.7 billion in the first 239 trading days
Impact on Market Liquidity
- Public companies added 297,673 BTC to their treasuries in 2024
- MicroStrategy acquired nearly 250,000 BTC, reaching a total of 439,000 BTC
- Approximately 230,000 BTC entered the market from various sources, aiding in making BTC supply more liquid
Future Outlook and Potential Developments
- Growing interest in a “Bitcoin Strategic Reserve” among lawmakers
- Potential for the US to hold BTC as a hedge against inflation
- Discussion of BTC reserves in countries like Brazil and Switzerland
Global Impact and Institutional Adoption
- Other countries like Bhutan and El Salvador already hold Bitcoin in their treasuries
- Improved regulatory clarity and more institutional funds embracing Bitcoin could lead to increased allocations
Mentioned in this article: BlackRock, MicroStrategy
