Before 2021, the crypto market direction was largely influenced by whales and individual investors. However, the dynamics have shifted, with reserve companies and institutional investors having entered the playing field significantly over the past year. The foundation for this shift was laid 21 months ago with the approval of a spot BTC ETF. The question now centers around the current state of institutional demand and reserves.
Bitcoin Reserves
At the time of writing, BTC price hovers just above the $112,500 support level. The reserves comprising DeFi assets, private company holdings, ETF-held assets, and public company Bitcoin 
$76,252 accumulations have surpassed 3.71 million BTC. The largest state-backed reserves exist in the US, Canada, the UK, Japan, and Hong Kong. The US continues to lead with 638,460 BTC, and companies like MARA and XXI are among the top three reserve holders, all based in the US.
In sixth place is Japan’s Metaplanet with 20,136 BTC, while Canada’s Hut8 holds the eleventh spot as the largest reserve company in the country. Among the top 20, two Chinese companies, Cango and Next Technology, each possess over 10,000 BTC. ETF holdings alone account for 1.472 million BTC, and notwithstanding the maximum supply of 21 million and the significant lost supply, the conditions for supply scarcity appear to be forming already.
Ethereum Reserves
In June, an intriguing development occurred. The formation of BTC reserves by MSTR propelled its stock prices to dotcom bubble levels, prompting companies to question why they weren’t forming reserves with a potentially cheaper and more volatile asset. Subsequently, Ether, recognized for its growth potential and value under its last ATH, was chosen.
This prudent decision led to rapid accumulation, with Ether reaching a new all-time high in August. Despite this, ETH remains below its 2021 peak and has yet to achieve the profit phase within the cycle or progress in price discovery compared to BTC, indicating further potential. Companies continued acquiring ETH throughout September, with Bitmine alone purchasing 202,500 ETH. On September 2, Yunfeng acquired 10K and Bitmine 74.3K ETH. More than 6.5 million ETH have been accumulated through the ETF channel.
The strategic ETH reserve stands at 4.7 million ETH. Although significantly lower earlier this year, the total value of these reserves has already exceeded $43 billion. Numerous companies are looking to sell shares to generate cash for multi-billion-dollar purchases.
