Retail Investors' Bitcoin Ownership Hits All-Time High With 17% Of Total Supply

• Retail investors’ Bitcoin holdings hit an all-time high, according to a new report from Glassnode.
• The group’s total Bitcoin ownership now stands at 17% of the total supply, a 5% growth from its 12% figure in 2020.
• Although current statistics from the report show that Bitcoin ownership is largely decentralized, critics argue that the survey did not account for wrapped and lost Bitcoin.

A new report released by blockchain analytics firm Glassnode shows that retail investors are doubling down on their Bitcoin (BTC) investments despite the recent bearish trend.

According to the report, retail investors’ BTC ownership is now at an all-time high of 17% of the total supply showing significant growth over the years. Retail BTC ownership has grown exponentially since 2011, with several periods of rapid growth, including the late 2014 bull market and 2017.

In 2020, the figure stood at 12% of the total supply showing a 5% growth in two years. Glassnode classifies retail investors as wallets holding less than 10 BTC in exchanges currently at $168,300.

With this new report, experts say that the asset is headed in the right direction. Blockchain expert Will Clemente lauded the performance of BTC in the last 12 years, although he believes it is not yet perfect.

“Not perfect yet, but solid for a 12-year-old asset and definitely trending in the right direction. Bitcoin’s supply disperses over time, while fiat’s holder base concentrates to whales over time.”

Blockchain analytics firm IntoTheBlock also confirmed the report with data showing that holders of 0-10 BTC stand at 17%. An increase in the total holding of retail investors shows a growth in the adoption of BTC rather than other narratives, such as distrust from institutional investors.

Are BTC holdings getting more decentralized?

Whales have been a significant part of every digital asset, opening up the decentralization debate. Over the years, data shows that BTC holdings are slowly becoming more spread across all categories of holders.

Data from IntoTheBlock show that wallets with 100 BTC are having a declining market share from 69.5% in 2013 to 59.8% today. BTC is also more decentralized than other top cryptocurrencies. About 38% of Ethereum (ETH) and 64% of Dogecoin (DOGE) are held by addresses with 0.1% of total supply compared to BTC with 9%.

Critics have pointed to the fact that the recent statistics do not include lost BTC, wrapped BTC signifying that it may not be as decentralized as portrayed.

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