Tether May Control the 10th Largest BTC Wallet
An on-chain research indicates Tether may control the 10th largest Bitcoin wallet, which holds over $3 billion worth of the flagship cryptocurrency.
Tether’s Bitcoin Holdings
According to on-chain research conducted by Tom Wan, Tether’s Bitcoin holdings could be around $1.5 billion or about 53,495 coins, making it the 12th largest BTC holders. Inflows are coming from stablecoin issuer’s sister company Bitfinex.
Steadily Accumulating Bitcoin Holdings
Over time, the wallet has been steadily accumulating Bitcoin and now holds 66,465.2 BTC in the wallet. Wan’s assumption is that Tether is amassing all of its BTC into a single address, possibly in a cold storage address.
Tether’s Investments
Tether revealed plans to use 15% of its realized net operating profits to invest in the flagship cryptocurrency. The firm earns income from its large portfolio of U.S. Treasury bills, gold, and other investments.
Stablecoin’s Reserve Model
Unlike traditional banks operating on a fractional reserve basis, Tether maintains its cryptocurrencies backed by mostly cash and short-term U.S. Treasury bills, yielding around 5.39% for 1-month.
Rising Price of Bitcoin
The price of Bitcoin briefly surpassed the $45,000 mark amid speculation a spot Bitcoin exchange-traded fund (ETF) could soon be approved in the United States.
Institutional Interest in Bitcoin
Investors believe that with institutional interest in a spot Bitcoin ETF rising, major financial powerhouses with $27 trillion in assets under management are making a move into Bitcoin and cryptocurrency.
Hot Take: Bitcoin Wallet’s Holdings
It’s worth considering Tether’s considerable holdings and the impact of the rising price of Bitcoin on the market, paired with the potential approval of a spot Bitcoin ETF in the U.S. This could lead to more institutional investment and more traditional financial giants investing in Bitcoin and digital assets. It’s essential to keep track of Tether’s role as a major player in the crypto-investment sphere and its influence on the market.
By
By
By
By
By
By