U.S.-based entities now control 65% more Bitcoin reserves than their non-U.S. counterparts, according to data from CryptoQuant.
CryptoQuant CEO Ki Young Ju shared on X that this ratio measures Bitcoin holdings of prominent U.S. entities, such as MicroStrategy, exchange-traded funds (ETFs), exchanges, miners, and government holdings, against those held offshore.
The ratio has climbed from 1.24 in September 2024 to 1.65 as of January 6, 2025, showcasing a substantial rise in U.S. dominance.
Non-U.S. Entities Held More Bitcoin for Much of 2023
For much of 2023, when Bitcoin traded below $30,000, non-U.S. entities held more Bitcoin than their U.S. counterparts.
The dramatic shift coincides with Donald Trump’s pro-crypto presidential re-election, which brought renewed optimism to the market.
His administration’s plans to create a national strategic Bitcoin reserve contributed to Bitcoin’s meteoric rise, pushing its price to a record high of $108,135.
The announcement also spurred activity in spot Bitcoin ETFs, leading to weekly inflows worth billions of dollars.
Collectively, these ETFs now manage over $108 billion in assets, representing 5.74% of Bitcoin’s total market capitalization, according to SoSoValue.
MicroStrategy, the largest corporate holder of Bitcoin, has continued to bolster its reserves.
The company recently acquired 1,070 BTC, bringing its total holdings to 447,470 BTC. Co-founder Michael Saylor announced plans to raise $42 billion over three years to fund additional purchases.
The wave of U.S.-led Bitcoin accumulation has prompted other countries and regions, including Russia, Poland, and Vancouver, to consider building their own Bitcoin reserves.
However, not everyone supports this trend. Steve Hanke, a professor of applied economics at Johns Hopkins University, criticized the idea of a U.S. strategic Bitcoin reserve.
Hanke argued that such savings divert resources from investments in production, innovation, and job creation, undermining economic growth.
Bitcoin is currently trading at over $94,000, down 2% in the past 24 hours.
US Spot Bitcoin ETFs See Over $35B in Inflows in 2024
As reported, spot Bitcoin ETFs in the United States recorded a remarkable $35.66 billion in net inflows in 2024, significantly exceeding early industry projections.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the market with $37.31 billion in inflows, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $11.84 billion, and ARK’s 21Shares Bitcoin ETF (ARKB) with $2.49 billion.
Other significant contributors included the Bitwise Bitcoin ETF (BITB), which reported $2.19 billion in inflows.
These figures far surpassed Galaxy Digital’s initial $14 billion first-year estimate.
However, Bitcoin ETFs faced a slight downturn toward the year’s end, with $1.33 billion in outflows since Dec. 19.
On the Ether ETF front, BlackRock’s iShares Ethereum Trust ETF (ETHA) and Fidelity Ethereum Fund (FETH) led inflows with $3.52 billion and $1.56 billion, respectively.
Grayscale’s low-fee Ethereum Mini Trust ETF (ETH) secured $608.1 million in inflows, while the Bitwise Ethereum ETF (ETHW) crossed $400 million.
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