Bitwise: 69% of Bitcoin Supply Held by Individuals as Institutions Fall Behind

2025-02-12 13:17:14 Primitive Reading

From beincrypto by Kamina Bashir

According to Bitwise Asset Management, individual holders control most of Bitcoin’s (BTC) total supply. 69.4% of the 21 million BTC total supply belongs to private investors.

Given this concentration of ownership among individuals, large institutions and governments seeking to acquire Bitcoin may face challenges.

Institutions Face Scarcity as Bitcoin Supply Declines

In a recent X post, Bitwise outlined Bitcoin’s total supply distribution. Apart from individual holders, approximately 7.5% of Bitcoin is considered lost. Funds and exchange-traded products (ETPs) control 6.1%.

The wallet associated with Satoshi Nakamoto, Bitcoin’s pseudonymous creator, holds 4.6%. Moreover, governments and businesses collectively own just 5.8% of Bitcoin.

Bitcoin Supply Dynamics. Source: X/Bitwise

The asset manager highlighted that if companies and governments wish to acquire Bitcoin, they will primarily need to purchase it from individuals willing to sell.

“That market dynamic between buyers and sellers could get very interesting,” the post read.

Hunter Horsley, CEO of Bitwise, also pointed out that despite consistent buying from corporates and ETFs, Bitcoin’s price has still faced downward pressure. He also stressed that the bulk of Bitcoin’s value remains in the hands of individual holders.

“Every new buyer must find a seller. Obvious but important as ever,” Horsley added.

Is a Bitcoin Supply Shock Coming?

Meanwhile, only 5.7% of Bitcoin remains to be mined. In addition, OTC (Over-the-Counter) markets are running low on Bitcoin. A crypto analyst highlighted that just 140,000 BTC remains in the OTC market.

“There’s almost no Bitcoin left even for institutions,” he claimed.

The analyst explained ETFs collectively purchased 50,000 BTC last month. Yet, price movements remained subdued. This suggested that institutions source Bitcoin from OTC markets rather than exchanges to avoid triggering price surges.

Disclaimer: This specification is preliminary and is subject to change at any time without notice. Amazon Finance assumes no responsibility for any errors contained herein.