The growing demand from institutional investors and large companies for investments in cryptocurrencies such as Bitcoin have contributed to the record hunt for many coins. Even if the entry of these pioneers often makes waves: Overall, the commitment of this group of investors is still manageable.
Like the industry portal cointelegraph.com with reference to data on the website buybitcoinworldwide.com reported, there are currently 34 listed companies worldwide that have already invested in Bitcoin. The stocks in the balance sheets of these pioneering companies add up to 216,692 Bitcoin and are worth a good ten billion dollars at current exchange rates.
That doesn’t sound bad at first, but it corresponds to only 1.15 percent of the around 18.8 million Bitcoins that have already been mined, or 1.03 percent of the technically possible 21 million Bitcoins. However, the look at the distribution of the coins is also exciting: With over 105,000 coins, almost half are in the wallets of the software company Microstrategy. Tesla (42,902 Bitcoins) and Galaxy Digital Holdings (16,400 Bitcoins) follow in the ranks.
Bitcoin funds manage four percent
Fund companies and asset managers who offer investment products on Bitcoin own 816,379 units, currently valued at around 38.5 billion dollars. This corresponds to a further 4.3 percent of all Bitcoins already in circulation or 3.9 percent of all maximum possible Bitcoins.
Here, too, there is a high concentration at the largest provider: The Bitcoin Trust of the crypto asset manager Grayscale alone contains 655,000 Bitcoins, around 80 percent of the coins held by fund providers.
Demand drives price
In total, a good five percent of all Bitcoins that have already been mined are owned by listed companies and institutional investors. In view of the growing interest and the advancing legitimacy of cryptocurrencies such as Bitcoin as a new asset class and the hope that Bitcoin ETFs will be approved by the US Securities and Exchange Commission, this number is likely to increase significantly in the medium and long term.
Note on conflict of interests:
The chairman of the board and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that benefit from any price development resulting from the publication: Bitcoin.
Author Nikolas Kessler has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that benefit from any price development resulting from the publication: Bitcoin.
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