Emily Walker
The year 2024 is shaping up to be a landmark year for cryptocurrency, particularly for Bitcoin. The year began with the introduction of spot exchange-traded funds (ETFs) that allowed Bitcoin to benefit from substantial new institutional investments, leading it to reach all-time high prices.
This trend of increasing institutional interest has been notable over the past year, marking Bitcoin’s rise as the preferred digital asset among major investors and corporations. A recent report from blockchain analytics company CryptoQuant underscores the influence of these large investors on Bitcoin’s performance this year.
Will 2024 Be a Landmark Year for Bitcoin Institutional Adoption?
In its most recent report, CryptoQuant examined how 2024 is proving to be a pivotal year for institutional adoption of Bitcoin, primarily due to the launch of spot ETFs in January. By the end of the year, these BTC funds are projected to hold over 1.1 million coins, even exceeding the holdings of Bitcoin’s mysterious creator, Satoshi Nakamoto.
The introduction of ETFs has afforded both institutional and retail investors a way to invest in Bitcoin indirectly. This has facilitated a consistent influx of capital into Bitcoin over the last 11 months.
CryptoQuant data indicates that Bitcoin’s realized market capitalization surged significantly, going from $430 billion to an impressive $730 billion so far in 2024. A key player in this growth is MicroStrategy, the largest corporate holder of Bitcoin this year.
According to CryptoQuant, MicroStrategy has worked diligently to maintain its status as the top corporate BTC holder by amassing coins throughout the year. At the start of the year, it held 189,000 BTC, which has since grown by 112% to 402,000 coins.
Additionally, on-chain data shows that significant Bitcoin investors have collectively boosted their holdings by 275,000 coins in 2024, reaching an all-time high of 16.4 million BTC. These statistics reflect increasing institutional demand and the strengthening role of Bitcoin in traditional finance over the past year.