Over the past few years, the crypto market has moved from a primarily onchain market to a “ubiquitous” asset class, according to a new research report.
In March of this year, President Donald Trump signed an executive order to create a working group charged “with establishing a Strategic Bitcoin Reserve.”
In recent months, more corporations have “purchased bitcoin to hold as a strategic reserve asset.”
Meanwhile, institutional investors have continued to “launch new products tracking bitcoin price movements as several U.S. crypto ETFs exploded in popularity.”
Against this backdrop, Gemini’s latest report with Glassnode offers a data‑driven assessment on the impact of “a US Strategic Bitcoin Reserve, analyzes bitcoin’s onchain performance, and explores the influence of corporate crypto adoptions and institutional participation.”
While the future potential impact of a strategic bitcoin reserve remains unclear, it may help hedge against inflation, devaluation and debasement of fiat currencies, and could provide a way to diversify investment portfolios – even with very modest 1-3% allocations.
A few key takeaways shared in the detailed research report are:
- Bitcoin treasuries now hold nearly one-third of bitcoin supply: Centralized treasuries—including governments, ETFs, and public companies—now control 30.9% of the circulating supply of bitcoin, signaling a growing shift toward institutional-grade infrastructure.
- Centralized exchanges, ETFs and derivatives dominate transfer volume: Centralized exchanges, U.S. spot crypto ETFs, and regulated derivatives platforms now account for more than 75% of bitcoin’s adjusted transfer volume, a notable increase from previous years.
- Volatility has trended downward: As adoption has broadened, particularly across sovereign and regulated financial entities, annualized realized volatility across all time frames has declined consistently since 2018. Although bitcoin remains a risk-on asset, its integration into traditional finance has made price action more consistent and less driven by speculative extremes.
- How the Strategic Bitcoin Reserve could impact BTC: For sovereign allocators like the Strategic Bitcoin Reserve, $1 invested has the potential to generate up to $25 in short-term market cap expansion—and ~$1.70 in long-term structural value.
