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Bitcoin Ownership Shift: A Decade of Institutional Adoption
Decade-long predictions are now real: 30.9% of Bitcoin’s circulating supply is held by centralized entities, including governments, ETFs, public companies, and exchanges, according to a report from Gemini and Glassnode.
This concentration represents over 7 million BTC, marking a significant structural shift toward institutional maturity within the cryptocurrency market.
Implications extend beyond mere statistics. The report notes concurrent declines in volatility across all time frames—1 week to 1 year—from 2018 levels, suggesting increased market stability as adoption broadens across sovereign and regulated financial entities. Analysts anticipate “more sustained and orderly rallies” compared to historical spikes.
Analysis of Bitcoin’s Centralized Holdings
The 30.9% ownership level corresponds to holdings by 216 distinct organizations within these categories.
While exchanges remain the largest holders (over 3 million BTC) and ETFs/ Funds collectively possess 1.3 million BTC, public companies currently number as the most populous category (101 entities holding 765,300 coins)
The report highlights a clear power dynamic: early adopters dominate the institutional landscape. “Across nearly all institutional categories (excluding private companies), the top three entities control between 65% to 90% of total holdings,” the report states.
Market Realignment and Implications
A notable trend sees balances at exchanges and DeFi protocols gradually declining. The report interprets this not as a reduction in overall supply, but as a “structural reshuffling of custody.” The stable range of spot BTC held by trading entities (3.9M-4.2M since June 2021) further supports this interpretation.
Per the report: “The drop in exchange balances does not imply shrinking supply, but rather a structural reshuffling of custody.” This shift is increasingly transferring assets towards the growing ETF and Fund sector.
Despite this evolution, the conclusion remains cautiously positive: higher institutional adoption, coupled with reduced volatility, signals Bitcoin’s advancement toward broader financial integration.
Source: Gemini and Glassnode
