New to Bitcoin? Start at 1.1
6.3Lesson 3 of 8
Funds, companies and governments
This lesson answers
- What is a bitcoin ETF?
- Is owning a bitcoin ETF the same as owning bitcoin?
- Why do companies buy bitcoin?
- Which governments own bitcoin?
- Where did the US government's bitcoin come from?
Bitcoin started as something individuals held. Today funds, companies listed on stock markets and governments also hold large amounts. They hold it in different ways and for different reasons, and knowing which is which helps make sense of the news.
Funds: what an ETF is
An exchange-traded fund, or ETF, is a fund whose shares trade on a stock exchange like a company's. A spot bitcoin ETF buys and holds actual bitcoin, kept by a custodian, and each share stands for a slice of it. Canada was among the first countries to allow them, in 2021; the United States followed in January 2024.
| ETF share | Bitcoin itself | |
|---|---|---|
| Bought through | A brokerage or retirement account | An exchange, an app or another person |
| Can be sent or withdrawn | No, only sold | Yes |
| Who holds the keys | The fund's custodian | You or an exchange |
| Ongoing cost | A yearly fund fee | None to hold; fees to move or trade |
| Trading hours | When the stock exchange is open | Every hour of every day |
Companies
Some companies keep part of their cash reserves in bitcoin, and a few have made buying it their main business. Their reasons vary: some see it as a hedge against their currency losing value, some as a way to attract investors. Their shares tend to rise and fall with bitcoin's price, often by more.
Governments
Most bitcoin held by governments was seized in criminal cases rather than bought. In 2020, for example, US prosecutors moved to take about 69,000 bitcoin that had been stolen from the Silk Road marketplace. In March 2025 the US government ordered that bitcoin it has permanently forfeited be kept in a Strategic Bitcoin Reserve instead of being sold. Some other governments have sold seized coins, and a few, such as El Salvador, have bought bitcoin directly.
What it looks like on the chain
The chain records addresses, not owners. At block 972,307, 2,034 addresses each held 1,000 bitcoin or more, together 36% of all coins. Many of these belong to exchanges, funds and custodians holding coins for large numbers of customers, so a big address is usually not one rich person.
Check yourself
Practice, not a test. Think of your answer first, then reveal it.
1Can you send bitcoin out of an ETF share to a friend?Reveal
No. An ETF share is a share in a fund that holds bitcoin. You can sell the share, but you can't withdraw or send the bitcoin.
2Where did most of the bitcoin held by governments come from?Reveal
Mostly from seizures in criminal cases, rather than purchases.
3Does a big address on the chain belong to one person?Reveal
Not necessarily. Many of the largest addresses belong to exchanges, funds or custodians holding coins for many customers.
Sources
- US Securities and Exchange Commission, order approving the listing of spot bitcoin exchange-traded products, 10 January 2024.
- The White House, Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile, 6 March 2025.
- US Department of Justice, civil action to forfeit cryptocurrency linked to Silk Road, November 2020.
- Balances by address size: a Bitcoin node's snapshot of every unspent output at block 972,307 (20 October 2026).