BlackRock’s IBIT Bitcoin ETF has recently achieved a significant milestone, becoming the third-largest holder of Bitcoin in the world. This impressive position places BlackRock’s ETF ahead of major competitors, including Grayscale, which holds the fourth-largest amount of Bitcoin. Fidelity’s FBTC fund is also noteworthy, ranking ninth on the list of top Bitcoin holders. These developments highlight the growing influence and presence of institutional players in the cryptocurrency space.
As of the latest data, the combined holdings of U.S. Bitcoin ETFs amount to just over 900,000 BTC. This collective total reflects the substantial impact that these financial instruments are having on the cryptocurrency market. In contrast, Satoshi Nakamoto, the enigmatic and pseudonymous creator of Bitcoin, is believed to hold over a million coins, although this figure remains a subject of debate and speculation within the cryptocurrency community.
Bitcoin ETFs’ Growing Influence
Bloomberg’s senior analyst Eric Balchunas has projected that Bitcoin ETFs are set to surpass Nakamoto’s holdings by late 2025. Currently, Nakamoto is reported to hold approximately 1.1 million BTC, making him the largest known Bitcoin holder. In comparison, U.S. Bitcoin ETFs collectively hold 909,700 BTC. When excluding Grayscale’s holdings, the total for U.S. ETFs alone is reduced to 645,899 BTC. This projection underscores the significant role that institutional investment vehicles are playing in shaping the future of Bitcoin ownership.
Top Bitcoin Holders
Here is a snapshot of the top Bitcoin holders based on recent analyses:
- Satoshi Nakamoto: Allegedly holds approximately 1.1 million BTC. This figure is controversial, with some research suggesting that Nakamoto may not have mined over 700,000 BTC.
- Binance Exchange: Holds over 550,000 BTC, making it the second-largest Bitcoin holder despite facing recent regulatory challenges.
- BlackRock’s IBIT Bitcoin ETF: Holds 347,767 BTC, making it the third-largest holder.
- Grayscale: With 263,801 BTC, Grayscale ranks as the fourth-largest holder.
- MicroStrategy: The largest public holder of Bitcoin, with 226,500 BTC.
- Bitfinex: Holds 221,315 BTC.
- US and Chinese Governments: Include Bitcoin holdings largely derived from seized assets.
Controversies and Debates
There is ongoing debate regarding Nakamoto’s exact Bitcoin holdings. BitMEX Research and other sources have questioned whether Nakamoto indeed mined as many as 700,000 BTC, adding an element of uncertainty to the widely accepted figures.
Additionally, the role of crypto custodians in holding Bitcoin is debated. For example, Coinbase, a major cryptocurrency exchange, was excluded from the list due to its role as a custodian of customer funds rather than an owner of Bitcoin itself.
BlackRock’s Dominance in the Crypto Space
BlackRock, the largest asset management company globally, continues to expand its footprint in the cryptocurrency sector. Token Terminal estimates BlackRock’s total assets under management (AUM) at approximately $10 trillion. The company’s iShares Bitcoin ETF alone is estimated to manage close to $21 billion in assets.
BlackRock has strategically placed its crypto investments under various categories, including crypto assets, stablecoins, and tokenized assets. Notably, BlackRock has partnered with Circle, investing in the Circle Reserve Fund through USDC reserves. As of the latest data, USDC has a supply of over $34 billion.
Furthermore, BlackRock’s involvement extends to blockchain technology through its stake in Securitize, a company specializing in managing digital assets like tokenized money market funds. There are speculations that BlackRock might launch its own blockchain to maintain an open ledger for its AUM. This potential move could further boost Bitcoin ETFs in the U.S. and solidify BlackRock’s position as a dominant player in the asset management sector.
Conclusion
The landscape of Bitcoin ownership is evolving, with institutional investors like BlackRock and Fidelity playing increasingly significant roles. As Bitcoin ETFs grow in prominence, they are poised to challenge longstanding records and reshape the cryptocurrency market. With the continued expansion of institutional involvement, the future of Bitcoin and its major holders will be closely watched by market participants and analysts alike.