Key Takeaways
- Bitwise projects $426.9 billion in institutional Bitcoin inflows by 2026.
- These inflows could represent 20.3% of the total BTC supply.
- BlackRock, Strategy, and sovereign funds are key drivers of demand.
Bitwise Investments estimates that institutional capital flowing into Bitcoin will reach $426.9 billion by the end of 2026, equivalent to roughly 4.2 million BTC or 20.3% of total supply.
The report highlights growing interest from asset managers, sovereign wealth funds, and state entities.
Key players in institutional demand
Major players driving the trend include BlackRock, whose IBIT ETF holds $71 billion worth of Bitcoin, and Strategy (formerly MicroStrategy), which now owns 576,230 BTC valued at $63.7 billion—2.74% of the total supply.
Public institutions like Texas’ teacher retirement fund have also joined, with a $500 million investment in Bitcoin ETFs.
Governmental involvement
National governments are increasingly involved as well.
The U.S. leads with 198,012 BTC ($16.8 billion), followed by China with 190,000 BTC ($16.1 billion), and El Salvador with 6,133 BTC ($521 million).
Supply constraints & market impact
Bitwise warns that post-halving supply constraints could intensify.
Only about 164,250 BTC are expected to be mined annually at the current block reward of 3.125 BTC.
If demand reaches projected levels, the resulting supply crunch could further elevate prices.
Risks & volatility
However, risks remain. Analysts caution that sudden sell-offs by institutions, SEC regulatory action against ETFs, or macroeconomic pressures like sustained interest rates could destabilize markets.
Price gains & volatility concerns
The report links recent price gains—including Bitcoin’s May 2025 all-time high—to this accelerating institutional demand, though volatility remains a key concern.
