Custody Wallets Accumulate Significant Bitcoin Holdings
Large custody wallets have accumulated a substantial $53 billion in Bitcoin over the past 12 months. This trend suggests that institutional demand for Bitcoin continues to be strong, according to data from CryptoQuant. The firm's analysis revealed that wallets holding between 100 and 1,000 Bitcoin have seen an addition of 577,000 Bitcoin over the last year.
ETFs and Institutional Investment Drive Inflows
CryptoQuant founder Ki Young Ju noted that this specific cohort of wallets, which includes holdings by exchange-traded funds (ETFs), has consistently received inflows. He further explained that by excluding exchanges and miners, this data provides a valuable approximation of institutional demand. The observed increase in holdings represents approximately a 33% growth over the last 24 months, a period that aligns with the introduction of the first spot Bitcoin ETFs.
Spot Bitcoin ETFs in the United States have recorded aggregate inflows totaling $1.2 billion so far this year. This inflow has occurred even as the underlying asset, Bitcoin, has experienced a gain of around 6%. Political economist Crypto Seth commented that institutions are just beginning their investment journey into Bitcoin and Ethereum, characterizing the current situation as merely the commencement of this trend.
Corporate Treasuries Boost Bitcoin Holdings
Crypto digital asset treasuries, notably led by Michael Saylor's Strategy, have acquired 260,000 Bitcoin since July. This acquisition is valued at approximately $24 billion based on current market prices. Glassnode reported that this represents a 30% increase in holdings over the past six months, a rate that surpasses the new supply generated by miners. Collectively, these treasuries now hold more than 1.1 million Bitcoin.
Market Reacts to Geopolitical Tensions
Recent market anxiety has coincided with Bitcoin prices retreating from a high of $97,000 last week to below $91,000 on Tuesday morning. The market's reaction is attributed to the escalation of trade conflicts between the United States and Europe.
Sustained Accumulation Trend Confirms Institutional Confidence
Data from CryptoQuant indicates that the accumulation trend commenced around the time spot Bitcoin ETFs were launched. This suggests that institutional participation has been a consistent and significant factor in the market. The sustained inflows underscore a continued confidence in Bitcoin as a viable institutional asset class, even in the face of market volatility.