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Crypto Funds’ Bitcoin Holdings Rise as Investor Demand Rebounds

Fund managers have added about 4,000 bitcoins in recent weeks.

Updated Apr 4, 2023, 9:25 p.m. Published Apr 4, 2023, 8:50 p.m.
(Getty Images)
(Getty Images)

Digital asset-based trusts and funds have boosted their bitcoin holdings as investor demand has rebounded in the weeks following a number of bank failures.

Data from crypto analytics firm CryptoQuant showed the amount of bitcoin (BTC) held by digital asset managers such as trusts and exchange-traded products (ETP) started to fall sharply in early March, dropping below 688,000 bitcoins on March 14 in the immediate aftermath of the failures of Silvergate Bank, Signature Bank and Silicon Valley Bank.

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The chart showed that crypto fund managers have added about 4,000 bitcoins since March 14. (CryptoQuant).
The chart showed that crypto fund managers have added about 4,000 bitcoins since March 14. (CryptoQuant).

In the weeks since, however, these fund managers have added back about 4,000 bitcoins, with holdings above 692,000 as of April 2, or nearly $20 billion worth at the current price just above $28,000.

광고

“Recent reports suggest that trust has returned to holdings,” CryptoQuant analyst Grizzly wrote in a note published on March 31. “This, I believe, is bitcoin's first significant test in the face of a severe crisis,” he told CoinDesk.

Grizzly further noted that widespread speculation the U.S. Federal Reserve has reached the end of its interest rate hike cycle has persuaded investors to boost their holdings.

While Fed Chair Jerome Powell gave no assurances of a pause at his last press conference in late March, the CME FedWatch Tool currently shows 58% of traders are not expecting a rate hike at the next Federal Open Market Committee meeting in May.

"Investors seem to be adopting a wait-and-see approach since the initial rush back into bitcoin,” James Butterfill, head of research at European digital asset manager CoinShares, told CoinDesk. "It still isn’t clear if the Fed’s bailout program has stemmed the run on banks.”

"We believe [the Fed] has only kicked the can down the road and that the Fed is stuck between not raising rates and causing an inflation problem, or raising rates and causing a banking crisis," he added. "Either way, it is likely to be supportive for BTC in the longer run.”

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Exchange Review - March 2025

Exchange Review March 2025

CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.

What to know:

Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.

  • Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
  • Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions. 
  • Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.

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