New analysis by London-based Nickel Digital Asset Management, a European digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan, has discovered that 38 listed companies with a combined market cap of over $961 billion have around $12 billion in Bitcoin. This represents 1.25% of the total Bitcoin supply cap, which is pegged at 21 million.
The research also reveals a 69% increase in the value of their holdings, when compared to just seven weeks ago. It comes after the price of Bitcoin hit a 19-month high on 4 December 2023, rising to more than $42,000.
Major firms holding Bitcoin
The listed companies with Bitcoin investments include major firms such as Tesla [NASDAQ:TSLA] and business intelligence and analytics group MicroStrategy [NASDAQ:MSTR].
Nickel’s analysis highlights a notable US and Canadian bias in these allocations. Nearly three-quarters of the 38 listed companies reviewed are US (15) and Canadian (13) businesses, four are European, and the remaining six companies are from Turkey, Thailand, Australia, Japan, Argentina, and Hong Kong.
Further analysis reveals around $55 billion of Bitcoin is held through various private companies, Bitcoin closed-ended trusts and exchange traded products (ETFs), which equates to 5.95% of the total Bitcoin supply cap. The corresponding figure on 18 October 2023 was $35 billion, representing a 55% increase in the value of their holdings.
- Cryptocurrency experts are split on where Bitcoin price will end the year
- What will the halving event do to the Bitcoin price?
- DePIN predicted to be major winner for crypto traders in 2024
These investment funds hold Bitcoin allocations on behalf of their clients, including a range of retail investors, asset managers, and – increasingly – institutional asset allocators.
The data shows 27 unlisted companies and funds hold Bitcoin, and their geography exhibits a similar strong North American bias, with US and Canadian funds accounting for over half (14). Seven of the private companies and Exchange Traded Funds are European, two are Brazilian, two are from Hong Kong, one is Japanese, and one is from Singapore.
Recognising the importance of diversification
Global research by Nickel shows investors are increasingly recognising the importance of digital assets in diversified investment portfolios.
More than 9 out of 10 (92%) institutional investors and wealth managers agree digital assets have an important role to play in portfolios but most prefer the investment level in digital assets to be moderate.
Anatoly Crachilov, CEO at Nickel Digital, commented: “Now that the BTC market has demonstrated a powerful recovery, delivering over 160% appreciation in 2023, the views of early investors who retained their position throughout the recent slowdown are being vindicated. Over time, more institutional investors are expected to recognise the long-term diversification benefits offered by digital assets and include them in portfolio allocation.”
Nickel Digital Asset Management is a London-based FCA-authorised and CFTC-registered investment manager that offers a range of digital asset strategy solutions for institutional investors. Its mission is to provide a gateway for traditional investors into the digital assets market across a broad range of risk profiles.
The firm pursues a range of systematic strategies dedicated to the digital assets market, with flagship offering of market-neutral arbitrage and multi-strategy non-directional funds, focusing on alpha generation. Nickel is led by a senior team of traders and investment professionals of experience gained in major Wall Street banks, such as Bankers Trust, Goldman Sachs, JPMorgan, Morgan Stanley, as well as global hedge funds.
