Bitcoin is seeing a significant boost from established financial players. Currently, over 10% of the total available Bitcoin is held either by publicly traded corporations or within the frameworks of exchange-traded funds (ETFs).
Charles Edwards, who leads Capriole Investments, brought this information to light via a post on X (formerly Twitter) on July 24, highlighting a noteworthy increase in accumulation by institutional entities.
Edwards emphasized that the percentage of Bitcoin controlled by institutions – spanning ETFs, listed firms, and investment trusts – has jumped from 4% to over 10% in just the last year and a half, reaching an all-time high.
Information gathered from Bitcoin Treasuries validates this observation. ETFs are now estimated to manage around 1.62 million BTC, with publicly traded companies holding roughly 918,000 BTC. Based on a recent market price of approximately $118,838 per Bitcoin, these institutional holdings have a combined value exceeding $250 billion.
Edwards suggests that these substantial accumulations are driven by institutional buyers acquiring Bitcoin at rates that outpace the rate at which new coins are mined. In some instances, daily corporate demand is reportedly ten times greater than the number of new Bitcoins entering circulation.
He explained:
“The proportion of existing Bitcoin being purchased by institutions each day (shown in blue) is currently ten times greater than the rate at which new Bitcoin is being mined (shown in red)! Historically, whenever institutional buying surpasses the mining supply rate, the price has seen substantial upward movement.”
This increasing trend can be traced back to 2020, when Strategy (formerly MicroStrategy) first started allocating portions of its treasury into Bitcoin.
Since then, a growing number of organizations, especially following policies favoring crypto assets from the Trump administration, have adopted Bitcoin as a strategic reserve asset and have accumulated significant holdings of the cryptocurrency.
Bitcoin Price Correlation
Edwards also highlighted a link between institutional trading activity on Coinbase, the largest crypto exchange in the US, and the price of Bitcoin.
He observed that historically, whenever institutional trading comprises between 10% and 50% of Coinbase’s daily trading volume, Bitcoin’s price has “risen sharply.”
This reinforces the growing connection between Bitcoin’s market value and the level of involvement from institutional investors.
Therefore, Edwards is optimistic about Bitcoin’s prospects, stating:
“The continuous growth in treasury companies, the volume of Bitcoin they are acquiring, and the frequency of their purchases makes it difficult to hold a bearish view. This phenomenon is unprecedented. The demand from these companies is effectively removing 1000% of the daily Bitcoin supply from the market each day.”
Consequently, he forecasts that Bitcoin’s price will soon surpass the $118,000 threshold once again.