Is cryptocurrency still dispersed in the $668 billion Bitcoin controlled by institutions?

A new report from Gemini and blockchain analytics firm GlassNode shows that centralized Bitcoin treasury controls 30.9% of the circular BTC supply.

This transformation represents more than 6.1 million BTC or at current prices of US$668 billion, marking the development of asset market structure. Researchers believe that this holding has focused on a broader system embrace of Bitcoin over the past decade.

Institutional control and centralized trends

The analysis shows that since 2014, BTC, including exchange-traded funds (ETFs), public companies, government entities and centralized custodians, has increased by 924%.

During the same period, Bitcoin’s spot price has increased from below $1,000 to above $100,000, enhancing its adoption of its strategic assets as an institutional player.

Although this transition is seen as a signal of market maturity, it also raises concerns about centralization and the impact of a small number of entities on the broader BTC ecosystem. The report details that half of the bitcoins calculated under centralized control are located on centralized exchanges.

These coins may be held on behalf of individual users, making them custodial holdings rather than exclusive holdings. But the institutional footprint of the Bitcoin market becomes clear when the exchange balance is combined with ETFs, public funds and sovereign treasury.

One of the main findings of the report is the high concentration of BTC in the institutional category. In several areas, especially ETFs, DEFI platforms and publicly traded companies, the top three entities control 65% to 90% of the supply allocated to their segments.

The centralization shows that early institutional adopters maintained a significant impact on Bitcoin’s market behavior. On the other hand, private companies exhibit a more distributed holding model, indicating a broader and more decentralized participation in the business sector.

Sovereignty and structural meanings

The government’s treasury has also become an unexpected holder of large Bitcoin reserves, mainly through legal enforcement and asset seizures. Countries such as the United States, China, Germany and the United Kingdom accumulate BTC through criminal investigations and confiscations rather than market purchases.

Although these sovereign wallets are usually dormant and rarely active, they are held enough to affect market sentiment if relocated or sold.

The study concluded that Bitcoin’s transition to centralized custody signals is a long-term structural transformation. As assets are further integrated into traditional financial systems, their volatility may become more restricted and their price movements are less speculative.

Despite this shift, researchers warn Bitcoin remains a risk-sensitive asset class, although its behavior is increasingly consistent with more mature financial instruments.

Feature images created with DALL-E, TradingView’s chart

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