Public companies, trusts and ETPs now control nearly 7% of Bitcoin supply

BTC worth more than $6.5 billion—or close to 1% of the total capital of encrypted assets—is held by 19 listed companies.Another 5.75% of Bitcoin’s market capitalization is determined by Exchange-traded products And closed trusts.

These numbers are included in a new study by Nickel Digital Asset Management. The 19 companies cited have a total market value of more than US$1 trillion, of which 13 are located in North America, 3 are located in Europe, and the rest are located in Turkey, Hong Kong and Australia. The other 17 listed companies have purchased BTC but cannot provide detailed information about their distribution.

research shows Institutions adopt encryption On the rise, 8 listed companies bought Bitcoin in the first four months of 2021, and there will be 7 in 2020.

In addition to the treasury bonds of listed companies, the study also found that BTC worth $43.2 billion-equivalent to nearly 6% of Bitcoin’s market value-was ETP And trust.

In Hedgeweek, Nickel’s CEO and co-founder Anatoly Crachilov believes that the combination of the COVID-19 crisis and the central bank’s expansionary monetary policy increases the risk of currency devaluation, adding:

“This, coupled with the Fed’s increasing inflation guidance, and the ever-expanding $18 trillion negative-yielding global bonds, has prompted many companies to consider alternative assets.”

Earlier this year, prior to the recent economic downturn, Nickel conducted research that indicated that institutional cryptocurrency allocation will continue to grow, with 81% of European wealth management institutions and institutional investors saying that they expect an increase in Bitcoin holdings in corporate reserves .

Crachilov asserted that the growing trend of institutions allocating bitcoin to their national debt will curb the price fluctuations of cryptocurrencies over time. “As these investors bring longer-term, more viscous capital, as well as larger cryptocurrency liquidity pools, it is expected that over time, large institutions and corporate participants will increase their allocations to reduce this volatility. Ecosystem,” he said.

However, not everyone agrees that institutions are working hard to access cryptocurrencies. Nikolaos Panigirtzoglou, an analyst at JPMorgan Chase, asserted that the recent The premium observed in the spot market is higher than the futures price Shows that institutional demand is weakening.

according to Bitcoin Treasury Bond, Another $13.5 billion worth of BTC (1.8% of Bitcoin supply) is stored in the vaults of four private companies-Block.One, Tezos Foundation, Mt Gox and Stone Ridge Holdings Group.

The site also estimates Bulgarian government Sitting on Bitcoin worth about 8.5 billion U.S. dollars, the Ukrainian government owns Bitcoin worth 1.8 billion U.S. dollars.