As the price of Bit continues to rise, its appeal has gradually shifted from retail investors to large institutions with strong capital and resources. Unlike the previous bull market, where the prosperity of the ecosystem and the entry of institutions were the core drivers of the price surge, in this round of the market, the deep layout of institutions has become an important variable in driving market development. From the successful approval of spot ETFs to the frequent increase in holdings by traditional financial giants and professional asset management institutions, institutionalization is reshaping the landscape of the Bit market. In this process, the investment logic of Bit is also quietly changing - from a speculative asset that simply chases price fluctuations, it is gradually evolving into a long-term allocation tool with asset diversification and anti-inflation characteristics. At the same time, the changes in the holdings and profitability of major institutions are also closely watched by the market: who is constantly increasing their Bit holdings? Which institutions have already obtained considerable returns from this round of rise? Whether the changes in the scale of holdings have had a significant impact on the market price? This article will focus on introducing the holding situation of several top-ranking institutions.
A Panoramic View of Bit Institutional Holdings: ETFs Become the Dominant Force in the Market
According to data from http://BitcoinTreasuries.com, as of November 18, 2024, 92 entities (including companies and countries) publicly hold nearly 2.718 million Bits, accounting for 12.94% of the total Bit supply. It can be seen that as Bit is gradually seen as "digital gold", institutional investment in Bit is not only a response to price fluctuations, but also a long-term plan for asset diversification and inflation hedging. Overview of Bit Institutional Holdings:
The most noteworthy is the proportion of Bit ETFs, whose holdings have reached 5.82% of the total Bit supply. Since the launch of the US Bit spot ETF in January 2024, the process of traditional institutions encroaching on the Bit market share has been accelerated.
ETF Race: BlackRock in the Lead, Grayscale Adjusts Its Strategy to Diversify
Bit ETFs provide investors with a convenient way to invest in Bit, especially the US Bit spot ETFs, as emerging tools in the market, have attracted a lot of attention. Since its launch in 2021, the ProShares Bit Futures ETF has shown certain capital inflows, but its gap with the spot Bit price is relatively large, mainly affected by the volatility of the futures market. In January 2024, the first US Bit spot ETF was officially approved, marking a new stage in Bit investment. With the launch of Bit spot ETFs, the participation of institutional investors has become more active, and the performance of leading institutions in the ETF holding structure is particularly noteworthy. Top 10 Bit ETF Holdings:
The iShares Bit Trust (IBIT: NASDAQ) under BlackRock firmly occupies the first place in the "gold-attracting list" of Bit ETFs. Since it started holding Bit on January 11, 2024, the Bit holdings of this trust have continued to increase. As of November 2024, the iShares Bit Trust held a total of 471,000 Bits, with a market value of over $4.3 billion, accounting for 2.24% of the total Bit supply.
According to the purchase history of iShares, BlackRock increased its holdings by more than 1,400 Bits in October 2024 and more than 2,500 Bits in November 2024, adding nearly 15,000 Bits in just a few months. Based on the market price of Bit at around $30,000 at the beginning of 2024, BlackRock's Bit increase cost was about $30,000 per Bit. The current Bit price is close to $91,000, and BlackRock's holdings have achieved a return of nearly double, with a cumulative profit of about $2.1 billion. In addition to the Bit market, BlackRock's layout in the digital asset field is also constantly deepening. In March 2024, BlackRock collaborated with Securitize to launch the tokenized fund BUIDL, expanding its influence in the Web3 field. In addition, BlackRock is also promoting the launch of an Ethereum ETF, further strengthening its strategic layout in the digital asset investment field. As a veteran institution in the crypto asset management field, Grayscale has been continuously reducing its Bit holdings, from a peak of 654,600 Bits to 218,400 Bits, in contrast to the continuous increase of traditional institution BlackRock.
For Grayscale, which has deeply cultivated crypto assets, a diversified crypto investment portfolio may have a larger profit margin. In the past year, Grayscale has significantly adjusted its investment strategy, accelerating the diversified layout of crypto assets. Grayscale currently manages trust funds for 14 crypto assets, including Bit, Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and other digital currencies. In addition, Grayscale has also launched three major sector funds, focusing on different types of crypto asset investments, such as DeFi, smart contract platforms, and other emerging crypto assets. Although the main battlefield of institutional investment is still overseas, the Asian market is also worth watching. According to data from SoSoValue, as of November 2024, Hong Kong has launched 6 spot ETFs, including the Bosera Bit ETF and the Hua Xia Bit ETF, among which the Hong Kong Bit ETF's asset size has reached $428 million.
Focus on Listed Company Holdings: MicroStrategy Far Ahead
Although the Bit holdings of these listed companies are far less than asset management companies, by categorizing them, we can see the diversified application and strategic value of Bit in institutions. MicroStrategy leads with 331,200 Bits, accounting for 1.58% of the global total. It is the benchmark for corporate Bit reserves. The US companies Marathon Digital, Riot Platforms, Hut 8, and CleanSpark represent the major Bit mining companies in North America, focusing on efficient and environmentally friendly mining, with Marathon holding 25,945 Bits, the most among mining companies. Crypto trading and service providers like Coinbase and Galaxy Digital hold 9,000 and 8,100 Bits respectively, and Germany's Bitcoin Group holds 3,830 Bits, an important participant in the European market. Top 10 Listed Company Holdings:
MicroStrategy (MSTR), a global business intelligence (BI) software company, seems to have become a "Bit qilin". In August 2020, MicroStrategy announced that it had spent $250 million to purchase 21,454 BTC, becoming the first publicly traded company to implement a BTC capital strategy.
Furthermore, on November 19, MicroStrategy announced plans to issue $1.75 billion in 0% convertible bonds and expects to grant the initial purchasers an option to purchase up to an additional $250 million of the notes within 3 days of the initial issuance. The announcement stated that MicroStrategy intends to use the net proceeds from this issuance to purchase additional Bit and for general corporate purposes. According to its announcement, MicroStrategy used the proceeds from stock sales to purchase an additional 51,780 Bits at an average price of $88,627 between November 11 and 17, 2024. As of November 18, 2024, MicroStrategy's Bit holdings have reached 331,200 Bits, with an average purchase cost of $49,874. Based on the current market price, the company's Bit investment has achieved a profit of 82.85%. In addition to the standout MicroStrategy and mining companies that continue to accumulate Bit through mining, other listed companies are relatively cautious in their Bit holdings, tending to treat it as part of a diversified asset allocation.
As the founder and CEO of Tesla, Elon Musk has always been a key figure in the cryptocurrency field. In February 2021, Tesla announced that it had purchased $1.5 billion worth of Bit, and planned to support Bit payments, which caused a huge reaction in the market. Although due to environmental concerns, Tesla suspended Bit payments in May of the same year, the company did not completely sell off its holdings, only selling 4,320 Bit in March 2021 and further reducing 29,160 Bit in June 2022, and has since maintained its holdings. As of November 18, 2024, Tesla still holds 9,720 Bit, with a current market value of approximately $9.14 billion.
Institutional promotion drives long-term value recognition of Bit
Overall, the long-term bullish sentiment of institutions towards Bit as a cryptocurrency asset is becoming increasingly clear. As large institutions such as BlackRock and Grayscale continue to increase their Bit holdings and strengthen their strategic deployments in areas such as Web3 and Ethereum through diversified digital asset layouts, Bit is expected to occupy a more stable position in global asset allocation in the future. Although the trend of Bit holding concentration may pose certain challenges to the decentralized nature of Bit, this is not necessarily negative. On the contrary, with the participation of large institutions and enterprises, the Bit market is expected to gain greater recognition and support, and continue to play an important role in the global financial system. On the one hand, the participation of large financial institutions and enterprises has brought more trust and stability to the Bit market. The deep involvement of these institutions reflects their confidence in the long-term value of Bit, further promoting the acceptance and adoption of Bit globally. This trend can provide strong support for the Bit price, while also increasing market liquidity and attracting more investors to the market. On the other hand, although the concentration of holdings has increased to some extent, the decentralized network structure of Bit remains solid. Numerous distributed nodes around the world ensure the independence and risk resistance of the Bit network. The participation of large institutions helps to promote the development of Bit technology and the enhancement of network security, further consolidating its position as digital gold. Furthermore, from the perspective of industry development, the deep participation of institutions can to some extent establish Bit as a benchmark for legitimate investment tools, and also drive the maturity and stability of the market. This trend may lead to a more positive regulatory attitude, creating favorable conditions for the compliance and legalization of the digital asset market, and promoting the entire industry to develop in a more robust direction.
