The Power Behind Positions: Insights into Bitcoin Institutional Layouts

Author: Chandler, Foresight News

As the price of Bitcoin continues to rise, its appeal is gradually shifting from retail investors to large institutions with substantial capital and resources. Unlike the previous bull market, where the prosperity of the ecosystem and the entry of institutions were the core driving forces behind the price surge, this round of market activity has seen institutions' deep involvement become an important variable in driving market development. From the successful approval of spot ETFs to the frequent accumulation by traditional financial giants and professional asset management institutions, institutionalization is reshaping the landscape of the Bitcoin market.

In this process, the investment logic of Bitcoin is also quietly changing—from a speculative asset that purely chases price fluctuations to a long-term allocation tool with asset diversification and anti-inflation characteristics. Meanwhile, the changes in holdings and profitability of various institutions are also attracting market attention: Who is continuously increasing their Bitcoin positions? Which institutions have gained substantial returns from this round of price increases? Has the change in holding scale had a significant impact on market prices? This article will focus on the holdings of several top-ranking institutions.

Overview of Institutional Bitcoin Holdings: ETFs as Market Dominant Forces

According to data from BitcoinTreasuries.com, as of November 18, 2024, 92 entities (including companies and countries) publicly hold nearly 2.718 million Bitcoins, accounting for 12.94% of the total Bitcoin supply. It can be seen that as Bitcoin is gradually regarded as "digital gold," institutional investment in Bitcoin is not only a response to price fluctuations but also a long-term plan for asset diversification and inflation hedging.

Overview of institutional Bitcoin holdings:

Notably, the proportion of Bitcoin ETFs is significant, with ETF holdings accounting for 5.82% of the total Bitcoin supply. Since the launch of the first U.S. Bitcoin spot ETF in January 2024, the process of traditional institutions encroaching on Bitcoin's market share has accelerated.

ETF Competition: BlackRock Leads, Grayscale Adjusts Strategy for Diversification

Bitcoin ETFs provide investors with a convenient way to invest in Bitcoin, especially the U.S. Bitcoin spot ETFs, which have attracted significant attention as emerging market tools. Since its launch in 2021, the ProShares Bitcoin Futures ETF has seen some capital inflow, but it has a large gap with the spot price of Bitcoin, mainly affected by fluctuations in the futures market. In January 2024, the first U.S. Bitcoin spot ETF was officially approved, marking a new phase for Bitcoin investment.

With the launch of Bitcoin spot ETFs, institutional investors have become more active, particularly regarding the performance of top-ranking institutions in the ETF holding structure.

Top 10 Bitcoin ETF Holdings:

BlackRock's iShares Bitcoin Trust (IBIT: NASDAQ) firmly holds the top position in the Bitcoin ETF "capital attraction list." Since starting to hold Bitcoin on January 11, 2024, the trust's Bitcoin holdings have continued to increase. As of November 2024, the total amount of Bitcoin held by the iShares Bitcoin Trust has reached 471,000, with a market value exceeding $4.3 billion, accounting for 2.24% of the total Bitcoin supply.

According to iShares' purchase history, BlackRock increased its Bitcoin holdings by over 1,400 and 2,500 Bitcoins in October and November 2024, respectively, accumulating nearly 15,000 Bitcoins in just a few months. Based on a market price of about $30,000 for Bitcoin at the beginning of 2024, BlackRock's average purchase cost for Bitcoin was approximately $30,000 each. Currently, with Bitcoin's price nearing $91,000, BlackRock's holdings have achieved nearly a 100% return, with cumulative profits of about $2.1 billion.

Beyond the Bitcoin market, BlackRock is also deepening its layout in the digital asset space. In March 2024, BlackRock partnered with Securitize to launch the tokenized fund BUIDL, expanding its influence in the Web3 space. Additionally, BlackRock is promoting the launch of Ethereum ETFs to further strengthen its strategic layout in digital asset investment.

Grayscale, as a veteran institution in the crypto asset management field, has been continuously reducing its Bitcoin holdings over the past year, from a peak of 654,600 Bitcoins down to 218,400 Bitcoins, in contrast to traditional institutions like BlackRock that are increasing their positions.

For Grayscale, which is deeply engaged in crypto assets, a diversified crypto investment portfolio may offer greater profit margins. Over the past year, Grayscale has significantly adjusted its investment strategy, accelerating its diversification into crypto assets. Grayscale currently manages trust funds for 14 crypto assets, including Bitcoin, covering multiple digital currencies such as Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). Furthermore, Grayscale has launched three major sector funds focusing on different types of crypto asset investments, such as DeFi (decentralized finance), smart contract platforms, and other emerging crypto assets.

Although the main arena for institutional investment remains overseas, the Asian market is also noteworthy. According to data from SoSoValue, as of November 2024, Hong Kong has launched six spot ETFs, including the Bosera Bitcoin ETF and the Huaxia Bitcoin ETF, with the asset scale of Hong Kong's Bitcoin ETFs reaching $428 million.

Focus on Public Company Holdings: MicroStrategy Leads by a Wide Margin

Although the Bitcoin holdings of these public companies are far less than those of asset management companies, categorizing them reveals the diverse applications and strategic value of Bitcoin among institutions.

MicroStrategy leads with a holding of 331,200 Bitcoins, accounting for 1.58% of the global total, setting the benchmark for corporate Bitcoin reserves. In the U.S., Marathon Digital, Riot Platforms, Hut 8, and CleanSpark represent major North American Bitcoin mining companies focused on efficient and environmentally friendly mining, with Marathon holding 25,945 Bitcoins, ranking first among mining companies. Cryptocurrency trading and service providers like Coinbase and Galaxy Digital hold 9,000 and 8,100 Bitcoins, respectively, while Germany's Bitcoin Group holds 3,830 Bitcoins, making it an important player in the European market.

Top 10 Public Company Holdings:

MicroStrategy (MSTR), a global business intelligence (BI) software company, seems to have transformed into a "Bitcoin treasure." In August 2020, MicroStrategy announced a $250 million investment to purchase 21,454 BTC, becoming the first publicly traded company to implement a BTC treasury strategy.

Additionally, on November 19, MicroStrategy announced plans to issue $1.75 billion in 0% convertible bonds, expecting to grant initial purchasers the option to buy up to an additional $250 million in bonds within three days of the initial issuance. The announcement stated that MicroStrategy intends to use the net proceeds from this issuance to purchase more Bitcoin and for general corporate purposes.

According to its announcement, MicroStrategy used proceeds from stock sales to purchase 51,780 Bitcoins for $4.6 billion between November 11 and 17, 2024, with an average purchase price of $88,627. As of November 18, 2024, MicroStrategy's Bitcoin holdings have reached 331,200, with an average purchase cost of $49,874. Based on the current market price, the company's Bitcoin investment profit has reached 82.85%.

Aside from the standout MicroStrategy and mining companies that continuously accumulate Bitcoin, other public companies are relatively cautious in their Bitcoin holdings, preferring to treat it as part of a diversified asset allocation.

Elon Musk, as the founder and CEO of Tesla, has always been a focal figure in the cryptocurrency space. Tesla first announced in February 2021 that it had purchased $1.5 billion in Bitcoin and planned to support Bitcoin payments, which caused a huge market reaction. Although Tesla suspended Bitcoin payments in May of the same year due to environmental concerns, the company did not completely sell off its holdings, only selling 4,320 Bitcoins in March 2021 and further reducing its holdings by 29,160 Bitcoins in June 2022, after which it maintained its position.

As of November 18, 2024, Tesla still holds 9,720 Bitcoins, with a current market value of approximately $914 million.

Institutionalization Drives Long-Term Value Recognition of Bitcoin

Overall, institutions' long-term optimism towards Bitcoin as a crypto asset is becoming increasingly evident. As large institutions like BlackRock and Grayscale continue to increase their Bitcoin holdings and strengthen their strategic deployments in Web3 and Ethereum through diversified digital asset layouts, Bitcoin is expected to occupy a more solid position in global asset allocation in the future.

While the trend of concentration in Bitcoin holdings may pose certain challenges to Bitcoin's decentralized nature, this is not necessarily negative. On the contrary, with the participation of large institutions and enterprises, the Bitcoin market is expected to gain greater recognition and support, continuing to play an important role in the global financial system.

On one hand, the participation of large financial institutions and enterprises brings more trust and stability to the Bitcoin market. The deep involvement of these institutions reflects their confidence in Bitcoin's long-term value, further promoting its acceptance and adoption worldwide. This trend can provide strong support for Bitcoin's price while also increasing market liquidity, attracting more investors to enter the market. On the other hand, despite the increase in concentration of holdings, the decentralized network structure of Bitcoin remains robust. Countless distributed nodes around the world ensure the independence and risk resistance of the Bitcoin network. The participation of large institutions helps promote the development of Bitcoin technology and enhance network security, further consolidating its position as digital gold.

Moreover, from the perspective of industry development, the deep involvement of institutions can help establish Bitcoin as a benchmark for legitimate investment tools, while also promoting market maturity and stability. This trend may lead to a more positive regulatory attitude, creating favorable conditions for the compliance and legalization of the digital asset market, and driving the entire industry towards a more robust direction.