Recent data from Glassnode indicates the number of bitcoin addresses holding at least $1 million worth of the largest cryptocurrency has surged in exponential fashion since the start of last year. Some of that is attributable to issuers of spot bitcoin ETFs such as BRRR. That’s because issuers of those products, like ordinary investors, use digital wallets. A recent report from Coinbase Institutional confirms the effects institutional investors are having on the bitcoin market.

“The rise of such publicly-traded crypto vehicles (PTCVs) has significant market [implications. They include potential demand for crypto and systemic risks] for the crypto ecosystem. When we think about systemic risk, there are two parts to this: 1) forced selling pressure and 2) motivated discretionary selling,” according to the report.

It’s impressive that the number of wallets holding at least $1 million worth of bitcoin is rapidly surging. But some naysayers might say issuers of products like BRRR shouldn’t be counted in that scenario. They’re entitled to their opinion, but sparks exist behind the ascent of the $1 million wallet club. Those include well-documented corporate buying of the digital currency.

Coinbase points out that many of the newer corporate buyers (excluding miners) are departures from what was seen a few years ago with MicroStrategy (MSTR) and Tesla (TSLA).

“That is, early adopters like Strategy and Tesla initially incorporated BTC as investments alongside their primary businesses. Comparatively, these newer entities have been fundamentally built around accumulating BTC or other crypto assets as their primary goal. They issue equity and debt (often convertible notes) to fund their [acquisitions. And] many trade at a premium over their net assets,” noted the exchange operator.

The institutional report sounded an optimistic tone for cryptocurrency in the second half of 2025. Several aspects support that tone. These include potentially increased regulatory clarity, stablecoin legislation, and approvals of ETFs linked to some smaller cryptocurrencies.

“Our crypto market outlook for 3Q25 is [constructive. It is buoyed] by a relatively sanguine US growth outlook, Fed rate cuts, increased corporate adoption of crypto and progress on US regulatory clarity,” according to the research. “Risks such as potential yield curve steepening and forced selling pressures from publicly-traded crypto vehicles exist. But we think that these are manageable in the short-term. [That said, weʼre confident about bitcoin’s upward trajectory even in the face of such risks. But] we think only select altcoins may perform well depending on their idiosyncratic circumstances.”

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