U.S. Entities Hold 65% More Bitcoin Reserves Than Non-U.S. Entities

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.

Bitcoin holdings of known U.S. entities (miners, MSTR, ETFs, exchanges, govt, etc.) divided by offshore known entities (exchanges, miners, govt, etc.).

— Ki Young Ju (@ki_young_ju) January 9, 2025

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.