A new Bitwise report estimates 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.
The Bitwise report explains that major financial entities have increased Bitcoin holdings since the Bitcoin halving 2024. That 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 grows.
Bitwise highlights that if institutions accumulate the projected volume, it will place 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
BlackRock Bitcoin holdings have grown significantly through its ETF product. The IBIT fund now manages $71 billion in BTC. Strategy, another top institutional holder, owns 576,230 BTC worth $63.7 billion, or 2.74% of total BTC supply.
The Bitwise report also lists public companies entering the market. Metaplanet recently started adding BTC to its balance sheet. Public companies and asset managers are not alone. The Texas Teacher Retirement System has placed $500 million into Bitcoin ETFs, showing U.S. state-level involvement.
Sovereign wealth funds Bitcoin activity is also expanding. Norges Bank and the Abu Dhabi Investment Authority have included Bitcoin in their portfolios. These entities now appear alongside firms like Fidelity and Morgan Stanley, which joined the space post-2024 halving.
BTC Supply Pressure Intensifies as Institutions Accumulate
The Bitcoin halving 2024 significantly reduced 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.
In May 2025, Bitcoin reached a new all-time high. This price move coincided with rising institutional demand and supply limits. The Bitwise report includes charts showing future allocation estimates. It also breaks down Bitcoin holdings by countries, corporations, and institutional buyers.
El Salvador currently holds 6,133 BTC, worth about $521 million. The United States holds 198,012 BTC, valued at $16.8 billion. Despite its trading ban, China holds 190,000 BTC worth $16.1 billion. These figures come from data published alongside the Bitwise report and visualized by Swan Bitcoin.
Bitcoin ETF Growth Raises Scrutiny and Exposure Risk
While the Bitwise report confirms strong institutional Bitcoin inflows, it also outlines key risks. A sudden reversal by institutional holders may impact the BTC market due to their large positions. High exposure could translate into volatility during sell-offs.
Bitcoin ETF growth has drawn more attention from regulators. The U.S. Securities and Exchange Commission (SEC) continues to review fund operations and 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 remain stable. The U.S. Federal Reserve has not announced any rate cuts, and interest rates are expected to hold steady in June 2025. These monetary policies may impact risk asset flows, including Bitcoin.
Institutional Ownership Data Provided by Bitwise and Swan
The Bitwise report includes multiple visuals sourced from Swan Bitcoin. These show institutional Bitcoin inflows projections through 2026, along with Bitcoin allocations by country, corporate entity, and public company.
According to the report, public companies Bitcoin exposure continues to rise. Data visualizations highlight how corporations and asset managers are accumulating long-term BTC positions.
The Bitwise report was published on May 27, 2025, by Linh Bùi and Ann Maria Shibu. Their research compiles updated data on institutional Bitcoin inflows, Bitcoin ETF volumes, and BTC supply trends post-halving.
