As spot exchange-traded funds (ETFs) and Trump’s victory freed a tsunami of wealth, the amount of Bitcoin owned by U.S. companies substantially surpassed the reserves touted by foreign rivals.
According to an investigation conducted by CryptoQuant, Bitcoin reserves that are based in the United States are 65 percent higher than those that are held under offshore management.
According to the data, the ratio of Bitcoin treasuries held by U.S. businesses to tokens held by institutions located outside of the United States hit 1.65 on January 6.
In an interview with X, CryptoQuant CEO Ki Young Ju revealed that the ratio is determined by dividing the public U.S. Bitcoin reserves by the holdings of foreign-based entities.
Trump, Wealth Funds, and Bitcoin
Throughout the majority of 2023, offshore Bitcoin reserves exceeded those held by the United States, but the cryptocurrency fluctuated below $35,000 due to massive market anxiety brought on by the failures that occurred in 2022.
On the other hand, Bitcoin storage facilities in the United States saw a significant surge beginning in January of the previous year, thanks to the approvals of spot Bitcoin exchange-traded funds by the Securities and Exchange Commission.
Read More: WazirX Recovery Funds Aimed At Rebuilding Trust In Crypto Ecosystem: CoinSwitch Co-Founder
Within a year, these products achieved rapid success, amassing more than 110 billion dollars in investor assets, which is equivalent to more than five percent of Bitcoin’s market value.
As a corporate reserve asset, Bitcoin was also piled into by businesses such as MicroStrategy Corporation.
BTC maxi Michael Saylor was the driving force behind the Tysons Corner company’s purchase of 258,320 BTC for a total price of $22.07 billion in 2024. For MicroStrategy, Saylor’s “21/21” ambitions would include the acquisition of even more of the most prominent cryptocurrency.
The fact that President Donald Trump transitioned from being a skeptic of Bitcoin to a supporter of the cryptocurrency further increased the asset’s attractiveness.
The optimistic market atmosphere and Trump’s vow to build a national Bitcoin reserve were the driving forces behind the spike in the price of Bitcoin, which reached a new all-time high of $108,135 after Trump’s victory.
In addition, a poll conducted jointly by Bitwise Asset Management and the analytics company VettaFi indicated that in 2024, 96 percent of financial advisers reported a rise in the number of questions from clients about cryptocurrency.
In addition, the survey found that investors’ allocations to cryptocurrencies increased by 11% as they became more comfortable with the growing asset class.