According to Mike Novogratz, CEO of Galaxy Digital, the use of Bitcoin as a corporate treasury reserve has peaked, with a decrease in new participants.
Shifts in Corporate Treasury Policies
With the launch of spot Bitcoin and Ethereum ETFs in 2024, companies have actively begun integrating cryptocurrencies into their treasuries. Pioneers like MicroStrategy and Metaplanet set the trend for others. However, Novogratz notes that the number of new participants entering the crypto asset corporate reserve space has peaked.
Record Bitcoin Sales by Galaxy Digital
Recently, Galaxy Digital facilitated a sale of 80,000 Bitcoins for an undisclosed client, marking a significant transaction in the industry. Novogratz attributed the success to favorable market conditions and strong demand.
Significant Outflows from US Spot Bitcoin ETFs
Bitcoin prices decreased about 3% over the past week, while US spot Bitcoin ETFs experienced consecutive selling over four trading days, with a total outflow of $1.2 billion. Despite this, ETFs continue to hold 6.1% of the total Bitcoin supply.
Thus, the growth in Bitcoin's use as a corporate treasury reserve has slowed, while the role of institutional investors in the market continues to grow.
