Bitcoin

Who’s buying Bitcoin? The US, China, UK, Ukraine, North Korea, Bhutan, El Salvador, Venezuela and Finland collectively hold 527,883 Bitcoin, valued at approximately $52.8 billion. Forty-three Exchange Traded Funds (ETFs) own 1.4 million Bitcoin, valued at $140 billion. Four major exchanges hold 154,852 Bitcoin, worth $15.5 billion. Forty private companies possess 290,878 Bitcoin, valued at $29.1 billion. Additionally, 140 large public corporations, including MicroStrategy, MARA, Metaplanet and Tesla, own 841,715 Bitcoin, valued at $84.2 billion.

Who’s buying Bitcoin? The Abu Dhabi Investment Authority, with $1.7 trillion in assets and one of the largest Sovereign Wealth funds, is buying Bitcoin. The Qatar Investment Authority is buying Bitcoins. Temasek Holdings (Singapore) is buying Bitcoin. Government Pension Fund Global (Norway) is buying Bitcoin. Saudi Arabia’s Public Investment Fund, managing $925 billion, is buying Bitcoin.

Switzerland has a campaign called 'Bitcoin Initiative' proposing that the Swiss National Bank buy Bitcoin as a reserve asset alongside gold. Mubadala (Abu Dhabi) is buying Bitcoin. Bank Markazi-ye Jomhuri-ye Esl mi-ye Ir n is buying Bitcoin. The Czech National Bank is buying Bitcoin. Portugal is offering citizenship through investment in a Bitcoin fund.

Who else is buying Bitcoin? BlackRock, the world’s largest asset manager with $11.5 trillion under management, has acquired $75 billion in Bitcoin and continues to expand its holdings. Other asset managers buying Bitcoin include Morgan Stanley, Vanguard, Cantor, Geode, Citadel, Clear Street, Weiss, State Street and Capital Group.

Institutional investors, including BlackRock (USA), Druk Holding (Bhutan) and major corporations, view Bitcoin as a hedge against economic volatility and a tool for portfolio diversification, driving its adoption and reinforcing its value as a scarce asset in an uncertain global economy.Who’s buying Bitcoin? Houston Firefighters’ Relief and Retirement Fund (USA) is buying Bitcoin. The Ontario Teachers’ Pension Plan (Canada) is buying Bitcoin. Yes, South Korea’s National Pension Service is buying Bitcoin. Texas, Wyoming, Florida, Louisiana, Oklahoma, Arizona, Tennessee, Nevada, New Hampshire have either passed or are considering Bitcoin-related resolutions, legislation, or policies.

Red alert: Who’s saying no to Bitcoin? Pakistan’s central bank – the State Bank of Pakistan (SBP). The SBP’s Circular No 3 is the SBP’s ‘prohibition notice’: Virtual currencies like Bitcoin are not legal money in Pakistan; Banks and financial institutions must stay away; Suspicious Transaction Reporting Required; No one is licensed to deal in them.

US state pension funds, including Arizona’s State Retirement System, California’s State Teachers’ Retirement System, Colorado’s Public Employees’ Retirement Association, Florida’s State Board of Administration, Illinois’ Municipal Retirement Fund, North Carolina’s State Treasurer, New Jersey’s Police and Firemen’s Retirement System, Ohio’s Public Employees Retirement System, Texas’ Teacher Retirement System, and Wisconsin’s Investment Board, are buying Bitcoin.

Nation-states are buying Bitcoin. Multi-billion-dollar corporations are buying Bitcoin. Institutions are acknowledging Bitcoin’s role as a hedge against economic uncertainty. From Texas to Switzerland, governments and funds explore Bitcoin's potential as a reserve asset, signalling a seismic shift in financial thinking.

Lo and behold, Bitcoin has a hard cap of 21 million coins, coded into its protocol. How will Bitcoin's constrained supply and surging demand impact its price?

Three questions: In what world does the SBP operate? Which economic playbook is the SBP following? Whose logic is guiding the SBP's actions?

The writer is a columnist based in Islamabad. He tweets/posts @saleemfarrukh and can be reached at: farrukh15@hotmail.com