Introduction
Bitcoin reserves held by US-based entities have surpassed those held offshore according to CryptoQuant.US data. The ratio of US to offshore Bitcoin holdings has reached a record high, with US entities now holding 65% more Bitcoin than their counterparts offshore. This development comes at a time when institutional interest in Bitcoin has surged, driven by significant price increases and the launch of new ETFs.
Data Overview
As of January 9, 2024, US-based entities held Bitcoin reserves that were 65% greater than those held offshore. This represents an increase from a ratio of 1.24 in September 2024 to a peak of 1.65 as of December 31, 2024. The chart below illustrates the growth of US Bitcoin holdings relative to offshore entities during this period.
Source: CryptoQuant
Key Drivers of the Shift
The surge in US Bitcoin reserves coincides with a significant increase in institutional demand and participation. This trend is particularly evident among major institutions, including corporate Bitcoin holders, ETF providers, and regulatory authorities.
MicroStrategy’s Bitcoin Strategy
MicroStrategy, the largest corporate Bitcoin holder, has been actively increasing its position since December 2024. The company purchased an additional 1,070 Bitcoin at an average price of $94,004 per Bitcoin during the last quarter. This transaction brought MicroStrategy’s total holdings to 447,470 Bitcoin, valued at approximately $28 billion and representing 2.1% of all Bitcoin that will ever exist. The firm’s strategy reflects a growing appetite for Bitcoin among US institutions, as detailed below.
Institutional Interest and ETFs
Institutional investors have increasingly turned to Bitcoin through the launch of spot Bitcoin ETFs. The first US-listed Bitcoin ETF, launched in January 2024, has already generated over $106.8 billion in inflows. These ETFs provide both institutional and retail investors with regulated exposure to Bitcoin, further amplifying the growing trend of Bitcoin adoption among US-based entities.
Market Dynamics and Corrections
While Bitcoin’s price has seen significant gains, market corrections have emerged as a notable factor influencing institutional sentiment. Recent sell-offs, driven by concerns about regulatory developments and market volatility, have prompted some institutions to reassess their positions. However, the resilience of Bitcoin remains intact, with ETF inflows continuing to expand.
Conclusion
The rise in US Bitcoin reserves reflects a broader shift toward institutionalization within the cryptocurrency ecosystem. As more entities recognize Bitcoin as an asset class, the demand for regulated exposure through ETFs and corporate holdings will likely continue to grow. This trend underscores the evolving nature of Bitcoin’s role in global financial markets.