Institutional Bitcoin Inflows Could Hit $426.9 Billion by 2026

This amount equals 4.2 million BTC or around 20% of the total supply. The prediction comes amid growing demand from asset managers, sovereign wealth funds, and public companies.

A new Bitwise report predicts that institutional Bitcoin (BTC) inflows could reach an impressive volume of 4.2 million coins by 2026. This prediction is based on an analysis of recent trends in asset managers, sovereign wealth funds, and public companies investing in Bitcoin.

The report, titled "Institutions Are Buying Bitcoin—A Lot Of It," provides a snapshot of the shifting landscape of Bitcoin ownership. It reveals that major financial entities have been incrementally increasing their Bitcoin holdings since the Bitcoin halving 2024. This halving reduced the block reward to 3.125 BTC, cutting the annual issuance to about 164,250 BTC.

As a result, BTC supply is now more limited, while institutional interest seems to be growing at an even faster pace. If institutions manage to accumulate the projected volume, it will place significant pressure on the remaining BTC supply. This development could reshape BTC ownership distribution in the coming year.

BlackRock and Strategy Lead in Institutional Bitcoin Holdings

Among the institutions holding large Bitcoin positions, BlackRock's IBIT ETF fund now manages $71 billion in BTC. This figure is a testament to the strong demand for the flagship cryptocurrency through exchange-traded products.

Strategy is another top institutional holder, currently managing 576,230 BTC, valued at $63.7 billion, or 2.74% of the total BTC supply.

The Bitwise report also lists several public companies that have recently started adding BTC to their balance sheets. Among them are Metaplanet, which has been gradually increasing its Bitcoin exposure in recent months.

Both public companies and asset managers are not the only ones entering the crypto space. The Texas Teacher Retirement System has placed $500 million into Bitcoin ETFs, showcasing involvement at the U.S. state level.

Sovereign wealth funds Bitcoin activity is also expanding. Norges Bank and the Abu Dhabi Investment Authority have included Bitcoin in their investment strategies. These entities now appear alongside firms like Fidelity and Morgan Stanley, which joined the crypto space post-2024 halving.

BTC Supply Pressure Intensifies as Institutions Accumulate

The Bitcoin halving 2024 had a significant impact on the number of new coins entering circulation. With supply now limited, institutional Bitcoin inflows could create a structural imbalance.

The Bitwise report calculates that if 4.2 million BTC enters institutional wallets by 2026, liquid supply will tighten further. Currently, about 19.8 million BTC is liquid, and if institutions manage to accumulate the projected volume, it will leave about 15.6 million BTC in liquid supply.

In May 2025, Bitcoin reached a new all-time high, which the report attributes to the interplay of rising institutional demand and limited supply. The report includes charts from Swan Bitcoin visualizing future allocation estimates to institutions, breaking down Bitcoin holdings by country, corporation, and institutional buyer.

According to the report, El Salvador currently holds 6,133 BTC, valued at about $521 million. The United States holds 198,012 BTC, valued at $16.8 billion. Despite its trading ban, China holds 190,000 BTC, valued at $16.1 billion. These figures are based on data published alongside the Bitwise report and visualized by Swan Bitcoin.

Bitcoin ETF Growth Raises Scrutiny and Exposure Risk

While the report by Bitwise confirms strong institutional Bitcoin inflows, it also highlights some key risks. A sudden reversal by large institutional holders may have a substantial impact on the BTC market due to their massive positions.

The report mentions that institutions' high exposure could translate into market volatility during sell-offs, especially considering the scale of institutional investments.

Moreover, the growth of Bitcoin ETFs has drawn more attention from regulators. The U.S. Securities and Exchange Commission (SEC) continues to review the operations of these funds and the overall market integrity. The report notes this ongoing SEC activity as a factor that may influence future Bitcoin ETF inflows.

At the same time, macroeconomic conditions appear to be stable. The U.S. Federal Reserve has not yet announced any plans for cutting interest rates, and interest rates are expected to hold steady in June 2025. These monetary policies may affect the flows of funds into risk assets, including Bitcoin.

The report concludes by emphasizing the significant shifts occurring in the cryptocurrency landscape. As institutions increasingly allocate funds to Bitcoin, the dynamics of BTC ownership and liquidity are changing, presenting both opportunities and challenges for market participants.

The data on institutional Bitcoin holdings is provided by Bitwise and Swan.