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6% of BTC in Circulation Scooped by Asset Managers and Companies, Analysis Show

As recently recorded, Asset Managers and financial institutions currently hold approximately 6% of the total supply of BTC. As analysts speculate, 21M BTC will circle the finance world by 2140. 18M are presently in circulation.

On May 22, 2010, slightly over a year after bitcoin had been coded into existence, Florida man Lazslo Hanyecz officially became the first person to use the digital currency in a commercial transaction. Hanyecz paid for a couple of pizzas worth about $30, with 10,000 BTC.

Fast forward to over a decade later, and those 10,000 BTC are worth roughly half a billion dollars, going by the cryptocurrency’s current market value.

From being worth less than a fraction of a dollar to reaching over $50,000 a pop, Bitcoin has had quite the journey. For a long time, players in the mainstream financial market were wary about BTC. They deemed it too volatile, too unpredictable, and too fringe, so they largely stayed away.

It also didn’t help that the blockchain technology underpinning Bitcoin was also a mystery to many would-be investors. 

MicroStrategy Opens the Floodgates

In August 2020, the perception of Bitcoin as an investment asset somewhat changed. MicroStrategy, a Virginia-based company that provides mobile software bought $425 million worth of Bitcoin. It was the signal others were waiting for.

Since then, companies like Tesla, Square Inc, Galaxy Digital, Coinbase, Marathon Digital, Bitcoin Group, Galaxy Digital, Hut 8, and Riot Blockchain have bought hundreds of millions of dollars worth of bitcoin.

These companies’ heads are famous figures like Elon Musk and Twitter’s Jack Dorsey, who lead Tesla and Square Inc, respectively. Musk and Dorsey, who both command colossal social media followings, have done much to influence the uptake of Bitcoin by both private individuals and large corporations.

Institutional Investors Take up BTC 

More traditional institutional investors also feel the need to join the bandwagon. Wall Street giants like JP Morgan and Goldman Sachs also quietly got into crypto investments. They did so either directly or through intermediaries.

JP Morgan’s foray into the digital currency space despite the company’s chairman and C.E.O. Jamie Dimon being a known Bitcoin skeptic is a testament of Bitcoin’s pulling power as an investment asset. 

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According to the digital assets management firm Coinshares, professional asset managers held up to $50 billion worth of digital assets at one time.

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