Bitcoin Spot ETF issuer VanEck stated in a report released yesterday that approximately $175 billion worth of BTC is held by ETFs, nations, and companies. The report also mentioned that an increasing number of 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 donation funds are also using Bitcoin as a store of value and a means of diversifying their asset allocation. Currently, ETFs, nations, listed companies, and private companies collectively hold approximately $175 billion worth of Bitcoin.
As of March 31st, according to VanEck’s statistics, the $175 billion represents about 12.77% of the total Bitcoin supply when converted at the BTC price at that time.
On the other hand, the report states that as Bitcoin becomes more mainstream, its adoption rate has significantly increased, and many merchants and businesses have started accepting Bitcoin as a means of payment. Additionally, the convenient infrastructure has eliminated the technical barriers investors used to face when purchasing cryptocurrencies.
The report also points out that after the COVID-19 pandemic, the global money supply has significantly increased, leading to inflation and weakening the purchasing power of existing fiat currencies. In contrast, Bitcoin, with its fixed total supply, serves as a potential inflation hedge, making it an attractive option for investors.
Furthermore, Bitcoin can add diversity to investment portfolios due to its low correlation with traditional assets.
Despite Bitcoin’s high volatility being criticized by many, it has been one of the best-performing assets in 8 out of the past 11 years. The report also lists the return rates of Bitcoin holding periods as of March 31st of this year:
1-year return rate: 147.89%
3-year return rate: 19.46%
5-year return rate: 1,598.56%
7-year return rate: 7,654.74%
10-year return rate: 18,719.44%
These figures demonstrate the high growth potential of Bitcoin and make it the preferred choice for investors seeking high returns.
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