Bitcoin ownership shows a more mixed, gray report than expected

A recent report from Grayscale Investments revealed an unexpected disparity in Bitcoin (BTC) ownership, with 74% of addresses holding less than 0.01 Bitcoin, which is roughly $380.

Greyscale's research dispels the inaccurate public belief that Bitcoin is largely owned by a few individuals, with 40% of the BTC supply concentrated among institutions such as exchanges, miners, governments, public companies and long-term holders.

Widespread ownership of Bitcoin

In the year As of November 6, 2023, 74% of Bitcoin addresses hold less than 0.01 BTC, which is roughly $380 at the time of writing.

The statistics highlight the accessible nature of Bitcoin, unlike traditional high-risk, high-return assets such as private equity and venture capital, often limited to accredited investors. Bitcoin, unlike these traditional assets, is available to a global audience with access to the internet.

An analysis of the top BTC wallet addresses shows that the biggest holders are not individual investors, but institutions such as crypto exchanges and government bodies.

The report shows that 40% of the total supply of Bitcoin is held by identified groups and public companies such as Tesla and MicroStrategy, mining firms, ETFs and dormant addresses.

The concept of “sticky supply”.

Another takeaway from the report is the concept of “sticky supply,” where bitcoin is held for long-term purposes and is less likely to be sold in the short term. This includes 14% of the supply that has been untouched for more than a decade, possibly owned by the mysterious creator of Bitcoin, Satoshi Nakamoto, or simply lost BTC.

When it comes to supply volatility, certain segments such as miners and exchanges, which account for 20% of the total Bitcoin supply, show price inconsistencies. The behavior suggests that these groups are less likely to sell their holdings due to price fluctuations, which contributes to the limited liquidity supply of Bitcoin.

The sticky offering aspect is appropriate in the context of upcoming events such as the approval of a spot Bitcoin ETF in the US. Spot ETF approvals further strengthen Bitcoin's already limited supply, increasing price volatility associated with demand for the asset.

The study concludes that the diversified and distributed nature of BTC ownership and the presence of institutional investors will significantly change the cryptocurrency landscape.

As we approach significant milestones such as the 2024 Bitcoin halving and regulatory changes, the dynamics of BTC ownership and supply may play a critical role in shaping market behavior.