Cryptocurrency News

Listed Companies, Trusts and ETPs Now Control About 7% of the Bitcoin Supply

BTC worth more than $6.5 billion – or close to 1% of the crypto asset’s entire capitalization – is held by 19 publicly listed companies. Who Else Has 5.75% of Bitcoin’s Market Cap exchange-traded products and close-ended trusts.

A new study by Nickel Digital Asset Management covers these figures. The 19 cited firms have a total market cap of more than $1 trillion, of which 13 are located in North America, three are domiciled in Europe, and the rest are in Turkey, Hong Kong and Australia. Seventeen other listed companies have bought BTC, although details about their allocation are not available.

study shows that Institutional Adoption of Crypto Increasingly, eight listed companies purchased bitcoin during the first four months of 2021, while seven companies purchased bitcoin during 2020.

Beyond the coffers of listed firms, the study identified that $43.2 billion of BTC – equivalent to about 6% of bitcoin’s market cap – is held by ETP and trust.

At Hedgeweek, Nickel CEO and co-founder, Anatoly Krachilov, argued that the combination of the COVID-19 crisis and central banks’ expansionary monetary policies has increased the risk of a currency collapse:

“This, coupled with rapidly rising inflation guidance by the Fed and an ever-increasing US$18 trillion pile of negative yielding global bonds, has encouraged many corporations to consider allocation of alternative assets.”

Nickel’s research, conducted at the beginning of the year before the recent recession, suggests that institutional crypto allocation will continue to increase, with 81% of European wealth managers and institutional investors indicating they expect to see an increase in bitcoin among corporate reserves. Let’s hope.

Krechilov stressed that the increasing tendency of institutions to allocate bitcoin to their coffers will reduce the volatility of the crypto’s price over time. “Increased allocation by large-scale institutional and corporate players is expected to reduce this volatility over time, thanks to the long-term, sticky type of capital brought in by those investors, as well as crypto’s much larger liquidity pools. ecosystem,” he said.

However, not everyone agrees that institutions are taking little part in their exposure to crypto, Nikolaos Panigirtzoglu, analyst at JPMorgan, recently reported. Premium seen on futures prices in the spot market Indicates that institutional demand is declining.

According to bitcoin treasury, another $13.5 billion in BTC (1.8% of the bitcoin supply) is held in the coffers of four private companies – Block.One, The Tezos Foundation, Mount Gox and Stone Ridge Holdings Group.

website also government of bulgaria Nearly $8.5 billion is sitting in bitcoin, while Ukraine’s government hotels hold $1.8 billion in BTC.