- ETF filings resulted in a spike in BTC supply held by US entities.
- Asia’s supply dominance increased a few months ago thanks to the region’s favorable approach.
Following the announcement of the Blackrock Bitcoin ETF solicitation on June 15, there has been a noticeable increase in Bitcoin share [BTC] delivery held or traded by entities located in the United States, data from Glasnode revealed.
Source: Glassnode
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If the trend continues, this shift in ownership could indicate a significant change in BTC supply dominance, with US entities gaining greater influence and control over the supply of the leading cryptocurrency.
Asia once “ruled” the BTC world
In a report Published by Glassnode early last month, the on-chain data company reported that its year-over-year BTC supply had changed based on geographic regions. Glass node found,
“The extreme dominance of US entities in 2020-21 has clearly reversed, with US supply dominance falling 11% since mid-2022.”
Source: Glassnode
The brief decline in US dominance was due to regulatory activity in the region. This included lawsuits filed by the Securities and Exchange Commission (SEC) against leading exchanges Coinbase and Binance.
Due to the region’s hostile attitude towards cryptocurrencies, a number of US-based entities have announced their intention to move their operations abroad in recent months.
In April, Gemini announced its intention to create 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 action taken by the SEC in April.
In addition, two major market makers, Jane Street Group and Jump Crypto, declared on May 9 that they were suspending their plans for crypto trading in the United States. Both companies cited regulatory uncertainty as a reason for their decisions, with Jump Crypto considering moving its operations abroad.
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On the other hand, Asia has always taken a receptive approach to crypto and players within the ecosystem. Speaking at the Bloomberg Wealth Asia Summit held in May, Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, said:
“We let them create the ecosystem here, and that actually brings a lot of excitement. But that doesn’t mean there’s light regulation.”
However, with a number of Bitcoin ETF filings made in America over the past month, things are changing fast. BTC supply dominance returned to the US, while Asia holds craters.