Institutional players bought 859,454 bitcoins (BitcoinIn 2024, the equivalent of eight years of BTC issuance and 4.3% of its total circulating supply, according to K33 do research report.
Most of this amount has been bought by exchange-traded funds (ETFs) and listed companies like stocks. Microstrategy.
The rise of US-traded Bitcoin ETFs emerged as a defining factor in 2024, reflecting growing demand for regulated exposure to BTC. Bitcoin investment vehicles added a total of 561,781 bitcoins, with US ETFs dominating inflows. These funds now manage 1.4 million bitcoins.
Black Rock See Bitcoin ETF will go keeps Most assets under management (AUM), in both dollars and bitcoins, with a reserve of 542,653 bitcoins valued at nearly $54 billion as of press time.
Bitcoin ETF launches break records with net inflows reaching $36.7 billion in its first 239 trading days. This growth outpaced even gold ETFs, which took more than 1,500 trading days to achieve similar figures.
By the end of the year, all bitcoin ETFs traded in the US had replaced gold ETFs in AUM, a milestone fueled by bitcoin's strong rally and resilient investor behavior.
Conversion of cash markets
Public companies significantly boosted Bitcoin demand in 2024, adding 297,673 Bitcoins to their coffers. MicroStrategy alone raised nearly 250,000 bitcoins through aggressive funding strategies, cementing its position as a key market player. The company now has 439,000 bitcoins.
Institutional appetite for Bitcoin dampens selling pressure recorded in 2024. Approximately 230,000 bitcoins entered the market through bankruptcy estates, foreclosed assets and creditor distributions, including Gox Coin and the German government.
However, these market dynamics have helped to liquidate some of the Bitcoin supply, with 22% of the circulating supply in the markets approaching a 2021 high. In addition, Bitcoin is the most liquid in terms of public company stocks.
Additionally, these corporate assets are expected to remain “sticky” alongside ETF inflows, limiting future selling pressure.
bright horizon
In addition to institutional interest, there has been a growing appetite for “strategic bitcoin reserves” among lawmakers in recent weeks. President-elect Donald Trump There was renewed hope that the US would hold Bitcoin as a hedge against inflation, fueling optimism among investors.
While the proposed reserve faces legal and logistical hurdles, its potential implementation could herald a new era of institutional and independent Bitcoin adoption.
Other countries such as Bhutan and El Salvador now hold Bitcoin in their treasuries. Meanwhile, the discussion about Bitcoin storage started Brazil and Switzerland.
This independent move, along with improved regulatory clarity and more funds investing in bitcoin as a portfolio diversifier, could further boost institutional allocations.
