A recent report by Gemini and Glassnode has shed light on the increasing concentration of Bitcoin supply in the hands of major institutional players and centralized entities. The findings reveal that over 30% of Bitcoin’s circulating supply is now controlled by just 216 centralized holders across various categories, including crypto exchanges, ETFs and funds, publicly traded companies, privately held firms, DeFi protocols, and government bodies.
These 216 entities collectively hold about 6.1 million BTC, valued at approximately $668 billion. This represents a significant increase in institutional Bitcoin ownership over the past decade. Centralized exchanges, led by Binance, hold the largest single share, with over 3 million BTC under custody. Publicly traded firms like Strategy (formerly MicroStrategy) are the most numerous corporate Bitcoin holders.
The report also highlights a trend of concentration among these entities, with the top three players in each category controlling between 65% and 90% of their total holdings. This trend is most prominent among ETFs, public companies, and DeFi-related holdings, where early movers continue to dominate.
One major trend identified in the report is the migration of Bitcoin from exchange wallets to institutional-grade custody solutions, particularly ETFs. BTC balances on centralized exchanges have been declining as more Bitcoin moves into ETFs and regulated funds, particularly US-based spot BTC ETFs. The emergence of Bitcoin ETFs has significantly advanced institutional adoption, with these products accumulating over 1 million BTC since their launch in 2024.
As institutional capital deepens its presence, Bitcoin’s market behavior is shifting. The report notes that Bitcoin’s realized volatility has steadily declined since 2018, and the launch of US spot ETFs has further reinforced this stability. Bitcoin is now entering a new maturity phase, with trading volumes increasingly occurring through centralized exchanges, ETFs, and regulated derivatives markets.
This evolution signals a market that is becoming more aligned with traditional financial infrastructure. The report suggests that large financial institutions and government bodies are increasingly viewing Bitcoin as a strategic store of value, especially given its significant price appreciation over the past decade.
Overall, the concentration of Bitcoin supply in the hands of institutional players and centralized entities reflects a broader shift in how Bitcoin is perceived and utilized within the financial industry. The market is evolving towards a more mature and institutionalized state, signaling a new chapter in Bitcoin’s journey as a digital asset.