Bitcoin: How U.S. market reclaimed BTC supply dominance
- ETF filings resulted in a spike in the supply of BTC held by US entities.
- Asia’s supply dominance was on the rise a few months ago due to the region’s favorable approach.
Following the announcement of the Blackrock Bitcoin ETF request on 15 June, there has been a noticeable increase in the proportion of Bitcoin [BTC] supply held or traded by entities based in the United States, data from Glassnode revealed.
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If the trend continues, this shift in ownership could indicate a significant change in the dominance of BTC supply, with US entities gaining more influence and control over the supply of the leading cryptocurrency.
Once upon a time, Asia “ruled” the BTC world
In a report published at the beginning of last month by Glassnode, the on-chain data firm reported that the year-over-year BTC supply had changed based on geographical regions. Glassnode found,
“The extreme dominance of US entities in 2020-21 has clearly reversed, with US supply dominance falling by 11% since mid-2022.”
The brief decline in US dominance was attributable to regulatory activities in the region. This included court actions filed by the Securities and Exchange Commission (SEC) against leading exchanges Coinbase and Binance.
In the past few months, due to the region’s hostile attitude towards crypto, a number of US-based entities announced their intentions to move their operations offshore.
In April, Gemini announced its intention to establish an offshore exchange in response to regulatory scrutiny. Bittrex, on the other hand, closed its operations in the United States in March and recently filed for Chapter 11 bankruptcy protection due to actions taken by the SEC in April.
Furthermore, on May 9, two major market makers, Jane Street Group and Jump Crypto, declared they were suspending their plans for crypto trading in the United States. Both companies cited regulatory uncertainty as the reason for their decisions, with Jump Crypto considering relocating its operations offshore.
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On the other hand, Asia has always adopted a receptive approach to crypto and players within the ecosystem. For example, at Bloomberg Wealth Asia Summit held in May, Hong Kong Monetary Authority Chief Executive Eddie Yue said:
“We will let them create the ecosystem here, and that actually brings a lot of excitement. But that doesn’t mean light-touch regulation.”
However, with a number of Bitcoin ETF filings made in America in the last month, things are quickly changing. BTC supply dominance was returning to the US, while Asia holdings craters.