"One-third of Bitcoins are owned by institutions and governments. Where is the future of decentralization?"
Bitcoin’s ownership structure is undergoing significant changes. Currently, about one-third of public Bitcoin circulation is controlled by ETFs, governments, and MicroStrategy, which has doubled from 14% in December 2023.
Ki Young Ju, founder of CryptoQuant, pointed out that MicroStrategy has become an important bridge between traditional finance and the encryption field, providing an effective channel for institutional funds to enter the Bitcoin market, especially attracting the attention of Nasdaq 100 index investors. At the same time, Ju responded to Bitcoin enthusiasts’ concerns about decentralization and self-custody. He believes that although the concept of self-custody is deeply rooted in the hearts of the people, practitioners are still in the minority, and MicroStrategy's "Bitcoin Bank" model provides a more acceptable solution through active management.
The success of this model validates the possibility of institutions participating in the Bitcoin market, but it also comes with the inherent risks in the traditional financial model. Investors still need to maintain rational judgment when enjoying the innovative dividends brought by Bitcoin. The bridge is being built, but how to cross it still requires careful consideration. If you want to know more about Bitcoin news, remember to follow Mr. Qiu, the next tweet will be more exciting!
