Grayscale Report Challenges Bitcoin Ownership Myths, Highlights Institutional Influence
Grayscale Investments, a major digital asset manager, has released a report shedding light on the distribution of bitcoin ownership, challenging common perceptions.
The study reveals that 74% of bitcoin addresses hold less than $350 worth, indicating a more widespread ownership among retail investors globally. Entities such as crypto exchanges, governments, miners, public companies like Microstrategy, and long-term holders concentrate approximately 40% of the bitcoin supply. Grayscale’s research emphasizes the concept of “sticky supply,” where certain ownership groups resist selling during price fluctuations.
Notably, inactive supply inactive for over a decade recently reached an all-time high, and balances of miners and exchanges have remained stable despite market volatility. This inelasticity could amplify the impact of external events like the 2024 halving or potential U.S. spot bitcoin ETF approval on bitcoin’s price. The study suggests that as illiquid supply grows and short-term supply decreases, ownership dynamics may increasingly influence bitcoin’s response to macro events, highlighting the evolving mainstream acceptance of bitcoin and its potential positive market forces.
Clever Robot News Desk 3rd December 2023
