Bitrabo Editorial
In an unexpected move, the German government’s sale of almost 50,000 BTC seized from the movie2k pirate site has prompted scrutiny into the potential impact of other governments releasing their Bitcoin holdings into the market.
The Hypothetical Flood of Bitcoin from Governments
Data sourced from Bitcoin Treasuries indicates that approximately 517,414 BTC ($32.9 billion) would flood the market if all nine identified governments opted to sell off their entire reserves of the leading cryptocurrency. These governments include the United States, China, the United Kingdom, Ukraine, El Salvador, Bhutan, Venezuela, Finland, and Georgia.
The United States possesses the largest BTC reserve among these governments, currently totaling 213,246 BTC, primarily stemming from seizures related to the Silk Road dark web marketplace. China follows with 190,000 BTC acquired through actions against the Plus Token Ponzi scheme. The United Kingdom holds 61,000 BTC seized from a former takeaway worker involved in money laundering activities.
Subsequent on the list are Ukraine with 46,351 BTC and El Salvador with 5,800 BTC, demonstrating a notable pro-Bitcoin stance following the country’s adoption of the cryptocurrency as legal tender in September 2021. Bhutan, Venezuela, Finland, and Georgia hold smaller BTC amounts of 621, 240, 90, and 66, respectively.
Significant Bitcoin Holdings by Fund Managers
Predictably, asset managers like BlackRock have amassed substantial Bitcoin reserves, primarily through Bitcoin exchange-traded funds (ETFs). In total, these fund managers collectively hold over 1 million BTC as per data from Bitcoin Treasuries.
BlackRock leads the pack with 316,276 BTC for their IBIT Spot Bitcoin ETF, followed by Grayscale with 272,661 BTC for their GBTC Spot Bitcoin ETF. Fidelity, Ark Invest, and Bitwise round out the top five with holdings of 176,995, 47,764, and 39,661 BTC, respectively.
At present, Bitcoin is trading at approximately $63,800, showing a 1% increase in the last 24 hours, according to data obtained from CoinMarketCap.