Major banks and institutional investors have been quietly accumulating Bitcoin during recent price dips, particularly throughout 2025, but this trend shows signs of evolving amid changing market conditions. Throughout much of 2025, institutional adoption of Bitcoin surged significantly, driven by the launch and growing popularity of spot Bitcoin exchange-traded funds (ETFs). These ETFs, such as BlackRock’s iShares Bitcoin Trust, have provided a regulated and accessible way for large financial institutions to gain exposure to Bitcoin without directly holding the cryptocurrency. This institutional demand has been substantial, with billions of dollars flowing into Bitcoin ETFs, effectively removing a significant portion of Bitcoin supply from circulation and supporting its price by tightening available supply[1].
In addition to ETFs, publicly traded companies known as Digital Asset Treasuries (DATs) have played a major role in accumulating Bitcoin. These companies, including well-known names like Michael Saylor’s Strategy Inc. (formerly MicroStrategy), have purchased Bitcoin aggressively using capital raised through stock issuance and debt instruments. Collectively, these DATs and some government institutions hold over 1.5 million BTC, which is more than 7% of Bitcoin’s total supply. This accumulation by corporate treasuries has created a durable demand base that helped Bitcoin maintain strong price levels even amid broader financial tightening[3].
However, recent data from late 2025 indicate a shift in this accumulation pattern. For the first time in several months, net institutional buying has dropped below the daily mined supply of new Bitcoin. This means that institutions and ETFs are no longer absorbing all the new Bitcoin entering the market, which could reduce the demand base that had been supporting prices. This change has caused some analysts, such as Charles Edwards of Capriole Investments, to temper their bullish outlooks. The slowdown in institutional accumulation may be due to structural constraints faced by firms and ETFs amid tighter liquidity conditions in the broader financial markets[2][6].
Despite this slowdown, institutional interest in Bitcoin remains significant. The presence of large holders, including banks and investment funds, continues to influence market dynamics. For example, during the October 2025 market volatility triggered by geopolitical tensions, institutional flows remained active, and Bitcoin’s price, although volatile, stayed within a relatively high range compared to previous years. This suggests that while accumulation may have slowed, major financial players are still engaged with Bitcoin, potentially positioning themselves for future price rebounds[4].
The accumulation by major banks and institutional investors during dips is part of a broader trend of Bitcoin gaining credibility as a form of “digital gold.” Unlike earlier Bitcoin rallies driven mainly by retail investors, the current phase is characterized by strategic, large-scale buying by entities seeking to hedge against inflation and diversify portfolios. This institutional adoption has helped Bitcoin develop a dual character: it attracts risk-on traders during economic booms and risk-off capital during downturns, enhancing its appeal as a long-term store of value[1].
In summary, major banks and institutional investors have indeed been quietly accumulating Bitcoin during price dips in 2025, primarily through ETFs and corporate treasury purchases. This accumulation has been a key factor supporting Bitcoin’s price and market stability. However, recent signs of reduced net institutional buying below mined supply levels indicate a potential shift in this trend, influenced by tighter liquidity and market uncertainties. Despite this, the overall institutional presence in Bitcoin remains strong, underscoring its growing role in mainstream finance.