Nikolas Sargeant
U.S. institutional control over Bitcoin has reached unprecedented levels, with American entities now holding 65% more Bitcoin than their international counterparts, according to recent CryptoQuant data.
CryptoQuant CEO Ki Young Ju revealed that this measurement encompasses Bitcoin holdings across major U.S. players, including MicroStrategy, ETF providers, exchanges, miners, and government reserves, compared to offshore holdings. The dominance ratio has experienced a significant jump from 1.24 in September 2024 to 1.65 by January 6, 2025.
Shifting Tides in Global Bitcoin Control
The landscape of Bitcoin ownership has undergone a dramatic transformation since 2023. While non-U.S. entities maintained majority holdings throughout most of 2023 when Bitcoin traded below $30,000, the tide shifted following Donald Trump's crypto-friendly presidential campaign. His administration's proposal for a national strategic Bitcoin reserve helped propel Bitcoin to its all-time high of $108,135.
This surge in U.S. dominance has been further amplified by the explosive growth of spot Bitcoin ETFs, which now manage over $108 billion in assets, representing 5.74% of Bitcoin's total market capitalization, according to SoSoValue. MicroStrategy continues to lead corporate adoption, recently adding 1,070 BTC to reach total holdings of 447,470 BTC, with plans to raise $42 billion for future acquisitions.
ETF Success Reshapes Market Dynamics
The U.S. spot Bitcoin ETF market has demonstrated remarkable success, accumulating $35.66 billion in net inflows during 2024. BlackRock's iShares Bitcoin Trust ETF (IBIT) emerged as the market leader with $37.31 billion in inflows, followed by Fidelity's Wise Origin Bitcoin Fund (FBTC) at $11.84 billion. The Ethereum ETF market has also shown promise, with BlackRock's ETHA and Fidelity's FETH leading with $3.52 billion and $1.56 billion in inflows, respectively.
Despite critics like Johns Hopkins University professor Steve Hanke arguing against national Bitcoin reserves, the trend has inspired other regions, including Russia, Poland, and Vancouver, to explore similar initiatives. Bitcoin currently trades at $94,000, reflecting a 2% decline in the past 24 hours.
