Bitcoin Exchanges Have Lowest Supply Since 2018
The number of Bitcoin in custody on cryptocurrency exchanges has fallen to a level not seen since November of 2018, Fidelity Digital Assets reported. The precipitous drop comes after increasing acquisition of Bitcoin by public companies onto their balance sheets, indicating a growing institutional trend for long-term investment. The drop followed the U.S. presidential election, something Fidelity identifies as a catalyst that may again spur institutional focus.
Corporate Accumulation Drives Decline
Fidelity reported that only 2.6 million BTC remain on exchanges, decreasing by more than 425,000 BTC since last November. This trend has been viewed widely as bullish, as it indicates a departure from active trading and long-term holding approaches. Publicly traded entities have purchased nearly 350,000 BTC in total over this period.
Strategy Leads the Charge
One company stands above the others—Strategy, the business analytics firm turned Bitcoin-centered organization co-founded by Michael Saylor. During the November timeframe, Strategy purchased 285,980 BTC, 81% of all BTC purchased by public entities during that timeframe. Their most recent purchase of 6,556 BTC was announced on April 21.
Asian Companies Follow Suit
The trend is not exclusive to the United States. In Japan, Metaplanet currently holds 5,000 BTC and plans to double its holdings by the end of the year, according to CEO Simon Gerovich. In Hong Kong, HK Asia Holdings has planned to raise $8.35 million to increase its exposure to BTC, in line with the growing corporate Bitcoin treasury trend.
Fidelity’s Institutional Push
Fidelity Digital Assets, a subsidiary of Fidelity Investments—which oversees $5.8 trillion in assets—has been a key driver of institutional adoption of Bitcoin. The firm launched in 2018 and has since been one of the leading companies in the industry. It also offers the Fidelity Wise Origin Bitcoin Fund, one of the initial 11 spot Bitcoin ETFs cleared for listing in the U.S., cementing its commitment to connecting traditional finance and digital assets.
