Bitcoin’s institutional adoption has reached a new peak. Currently, there is more than 10% of the total BTC supply held in funds traded on public companies or exchanges.
Capriole Investments CEO Charles Edwards shared the update in X’s July 24th thread, noting a massive surge in the accumulation of the system.
Edwards noted that the proportion of Bitcoin held by institutions, including ETFs, public companies and mutual funds, has risen from 4% in the past 18 months to a high of over 10%.
Data from Bitcoin Treasuries support this trend, indicating that exchange trade funds currently control around 1.62 million BTC while publicly available companies hold around 918,000 BTC. At its current market price of approximately $118,838 per coin, the plan holds are valued at over $250 billion.
According to Edwards, these important holdings were strengthened by the fact that institutional purchases absorb Bitcoin well beyond natural issuance. In some cases, daily demand from corporate buyers is ten times the number of new coins mined.
He said:
“The daily percentage of all Bitcoin earned by the institutions per day (blue) is currently 10 times higher than the Bitcoin mining supply growth rate (red).
This accelerated trend can be traced back to 2020, when strategies (previously micro-tactics) began converting parts of their balance sheets to Bitcoin.
Since then, more and more companies have adopted Bitcoin as a strategic reserve asset, winning the best crypto, especially under the pro-cryptic administration of President Donald Trump.
Bitcoin price correlation
Meanwhile, Edwards also noted the correlation between institutional activity at Coinbase, the largest crypto exchange in the United States, and Bitcoin price.
He said that whenever institutional transactions account for 10% to 50% of the platform’s daily activities, “prices have historically failed.”
This shows an increasingly important correlation between BTC prices and institutional activities.
With this in mind, Edwards believes this trend is driving bullish prospects for top crypto assets.
“It’s hard not to be bullish with the exponential growth in the number of finance companies, the amount of Bitcoin you’re buying, and the frequency you’re buying. It’s a frequency that we’ve never seen before in history. It’s hard for these companies to remove their daily supply of Bitcoin from the market every day.”
As a result, he believes Bitcoin prices will soon surpass the $118,000 range.