Bitcoin Ownership Skews Towards Individuals, But Institutional Holdings are growing
Recent research from fintech firm River, reported by CoinDesk, reveals that individual investors still hold the majority of Bitcoin, though institutional ownership is steadily increasing.
The study, analyzing data as of August 25th, estimates that approximately 65.9% of all bitcoin in circulation – roughly 13.83 million coins – is controlled by individuals. This includes wallets directly managed by users and accounts held on cryptocurrency exchanges categorized as belonging too individuals.
Institutional investors are divided into three main groups: companies, Exchange Traded Funds (ETFs), and funds. Companies, encompassing corporate treasuries and customary businesses reporting Bitcoin holdings, possess around 6.2% of the total supply, equating to 1.3 million BTC. ETFs and investment funds, including spot ETFs and custodial vehicles, control approximately 7.8%, or 1.63 million BTC. Governments currently hold an estimated 1.5% (306,000 BTC) based on tracking publicly known sovereign addresses.
Beyond these active holders, the River analysis identifies two significant categories: lost Bitcoin and holdings attributed to Bitcoin’s creator(s). Approximately 7.6% of the total supply (1.58 million BTC) is considered lost, based on the age of coins that haven’t moved in years and are likely irretrievable. An estimated 4.6% (968,000 BTC) is believed to be held by the original miner(s), Satoshi Nakamoto, based on analysis of early mining patterns.
Currently, 5.2% of the total 21 million Bitcoin cap – 1.09 million BTC – remains to be mined.
River’s research utilizes public records, prior custody classifications, and blockchain analysis. CoinDesk notes that these estimates aren’t definitive due to the way custodians group customers, potential misclassification of wallets, and the inherent opacity of some holdings.
The study concludes that while individuals remain the dominant force in Bitcoin ownership, the growing adoption of ETFs and the increasing number of companies treating Bitcoin as a balance sheet asset are driving a significant expansion in institutional participation.