Number of institutional bitcoin investors has risen to a four-year high

At the same time, the pace of asset accumulation by retail investors has slowed down

24.10.2024 - 13:00

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3 min

What’s new? The number of large bitcoin holders owning at least 1000 coins jumped this week to its highest since January 2021 at 1678, according to Andre Dragosch, an analyst at investment firm Bitwise, citing data from platform Glassnode.

Material by CoinDesk

What else is known? The accumulation of BTC by institutions, combined with the continued inflow of funds into spot exchange-traded funds (ETFs) based on BTC for three weeks, may indicate growing confidence in the positive dynamics of the asset’s rate.

At the same time, the pace of accumulation of the asset by retail investors has slowed, as reported by CryptoQuant analysts. According to their data, over the past 30 days, retail market participants have added only 1000 bitcoins to their wallets, which is low compared to historical data.

Since the start of 2024, large investors’ assets (between 1000 and 10 000 BTC) are faster, with retail investors accumulating 30 000 coins compared to 173 000 for institutional investors.

Earlier this week, Japanese company Metaplanet raised another $66 million by selling shares to buy additional BTC. Following the strategy of MicroStrategy, the largest corporate holder of BTC, the company began buying the asset in April this year, after which its share price rose hundreds of percent.

BlackRock: The launch of spot BTC ETFs attracted newcomers to the stock market

Of the 80% of direct investors, 75% had never before owned shares of BlackRock’s iShare Group iShare exchange-traded funds

In mid-October, bitcoin’s share of crypto market capitalization, a metric also known as BTC dominance, rose to its highest since April 2021 at 59%. At the moment, it is still holding at that mark.

Also this month, analysts at broker Bernstein said that Donald Trump’s victory in the US presidential election will cause bitcoin to rise to $90 000. The election will take place on November 5. The largest decentralized crypto prediction market Polymarket has 61% of votes in favor of Trump.

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