One-third of all known Bitcoin holdings are now controlled by institutions and governments

Governments, exchange-traded funds (ETFs), and MicroStrategy now control approximately one-third of all publicly known Bitcoin holdings, indicating a substantial change in ownership dynamics.

According to data provided by Ki Young Ju, the proprietor of the crypto analytics firm CryptoQuant, this figure represents a substantial increase from the 14% reported in December 2023.

Ju emphasized the critical role that MicroStrategy plays in the Bitcoin ecosystem, emphasizing the company’s strategic position as a bridge between traditional finance and cryptocurrency.. He emphasized that MicroStrategy serves as a conduit for institutional capital, particularly from Nasdaq-100 investors, to enter the Bitcoin market.

He also addressed the skepticism that some Bitcoin enthusiasts have towards MicroStrategy’s approach, which includes concerns over self-custody. Ju observed that although a significant number of Bitcoin advocates priorities privacy and decentralization, only a small percentage of them actively engage in self-custody.

He contended that MicroStrategy’s “Bitcoin bank” model is consistent with the present state of adoption. This model provides a managed approach to the accumulation and holding of Bitcoin.

Ju further elaborated that the concept of a “Bitcoin bank” could be validated if MicroStrategy’s active management strategy enables it to acquire substantial Bitcoin holdings with relatively modest capital investments. Nevertheless, he advised that, similar to any financial strategy, there are inherent risks, and investors should approach it with the same level of confidence as they would in a traditional banking model, utilizing Bitcoin as the underlying currency.

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