Bitcoin Spot ETF issuer VanEck stated in a report released yesterday that approximately $175 billion worth of BTC is held by ETFs, countries, and companies. The report also mentioned that more and more merchants and businesses are willing to accept Bitcoin as a form of payment.
According to the report, institutional investors’ interest in Bitcoin is gradually increasing. Hedge funds, asset management companies, and philanthropic funds are also considering Bitcoin as a way to store value and diversify asset allocation. Currently, ETFs, countries, listed companies, and private companies collectively hold about $175 billion worth of Bitcoin.
Based on VanEck’s statistics as of March 31st, converted at the Bitcoin price at that time, $175 billion represents approximately 12.77% of the total Bitcoin supply.
On the other hand, the report indicates that as Bitcoin becomes more mainstream, its adoption rate is growing significantly, and many merchants and businesses are starting to accept Bitcoin as a means of payment. Additionally, convenient infrastructure has eliminated the technical barriers that investors faced when purchasing cryptocurrencies.
The report also points out that after the COVID-19 pandemic, global currency supply has increased significantly, leading to inflation and weakening the purchasing power of existing fiat currencies. In contrast, Bitcoin, with its fixed total supply, is an attractive choice for investors as a potential hedge against inflation.
Furthermore, Bitcoin can add diversification to investment portfolios as it has lower correlation with traditional assets.
Although Bitcoin’s high volatility has been criticized by many, the report shows that out of the past 11 years, Bitcoin has been the best-performing asset for 8 years. The report also lists the returns of Bitcoin holding periods as of March 31st this year:
1-year return: 147.89%
3-year return: 19.46%
5-year return: 1,598.56%
7-year return: 7,654.74%
10-year return: 18,719.44%
These numbers demonstrate the high growth potential of Bitcoin and make it the preferred choice for investors seeking high returns.