Summary:
69.4% of Bitcoin is owned by individuals, revealing their dominance in the market.
Only 5.7% of Bitcoin supply remains to be mined, emphasizing scarcity.
Institutional investors hold just 6.1% of Bitcoin, contrary to popular belief.
Calls to “hodl” are rising as a potential supply shock looms.
Bitwise has recently shed light on the ownership dynamics of Bitcoin, highlighting the overwhelming dominance of individual investors over institutional players. Despite the increasing reports of institutional purchases, including from exchange-traded funds and companies like MicroStrategy, the reality is that individuals hold the majority of Bitcoin.
Bitcoin Price in the Hands of Individuals
According to Bitwise's Q4 2024 crypto market report, as of December 31, 2024, individuals owned 69.4% of the total Bitcoin supply. In contrast, institutional investment funds held just 6.1%, businesses 4.4%, and governments a mere 1.4%.
Breakdown of Bitcoin ownership by investor class - Source: Bitwise
The asset manager emphasized, “If companies and governments want to buy Bitcoin, they’ll largely have to buy it from individuals who are willing to sell.” This statement gains weight when considering that only about 5.7% of Bitcoin supply remains to be mined, showcasing the scarcity narrative that surrounds this digital asset.
As demand increases from both institutional investors and nation-states, the pressure on available supply is expected to intensify.
Interestingly, Bitcoin ETFs and other investment products currently hold more than 6.1% of the total supply, surpassing businesses. Additionally, the original creator, Satoshi Nakamoto, is estimated to control 4.6% of the supply, while 7.5% of Bitcoin is believed to be lost.
Industry experts, including Tom Serres from Warburg Serres Investments, have pointed out that this supply dynamic raises questions about how corporations and governments looking to build reserves will acquire Bitcoin.
Bitwise CEO Hunter Horsley reiterated that the price of Bitcoin is predominantly influenced by the individuals who hold it. This data has sparked passionate calls to “hodl,” the crypto slang for holding onto assets regardless of market fluctuations, as many anticipate a supply shock that could lead to soaring prices.
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