A new report by Gemini and Glassnode reveals that centralized entities now hold almost a third of Bitcoin’s circulating supply. The research shows that governments, public companies, ETFs, and centralized exchanges collectively control 6.1 million BTC, worth approximately $668 billion at current market prices. This accounts for 30.9% of all Bitcoin in circulation, signaling a massive shift toward institutional participation and infrastructure in the crypto space.

Institutional Rise in Bitcoin Holdings

The report highlights the rapid rise in Bitcoin holdings among centralized and institutional treasuries over the past decade. In fact, these holdings have grown by 924% in just ten years. In the same timeframe, Bitcoin’s spot price has surged from under $1,000 to over $100,000, reinforcing the view that institutions increasingly see Bitcoin not just as a volatile digital asset, but as a strategic store of value.

This transformation is not just about quantity—it’s about the nature of ownership. Institutional investors bring a level of credibility and long-term commitment that contrasts with retail speculation. As institutional adoption rises, the market appears to be maturing, showing more consistent behavior and less susceptibility to extreme volatility.

Who Holds the Most Bitcoin?

The report breaks down centralized Bitcoin holdings into several categories:

• Centralized exchanges

• Exchange-traded funds (ETFs)

• Public and private companies

• Sovereign treasuries (governments)

Interestingly, centralized exchanges account for the largest share of these holdings. However, it’s important to note that much of this Bitcoin is held on behalf of retail users and institutional clients, and not necessarily owned by the exchanges themselves.

Among the institutional holders, the top three entities in each category control between 65% and 90% of the total BTC held. This shows a high concentration of holdings, particularly in public companies, ETFs, and DeFi funds. In contrast, private companies show a more distributed ownership model, suggesting wider participation from smaller businesses.

Government Holdings: Dormant but Powerful

Sovereign governments also appear in the report. The Bitcoin held by the United States, China, Germany, and the United Kingdom is mostly acquired through legal seizures rather than market purchases. Although these wallets are often inactive, they hold enough Bitcoin to influence markets if large movements occur.

The researchers describe these holdings as “structurally distinct”—they’re dormant, yet possess the potential to move markets when activated. That means that a single decision to liquidate or reallocate funds from a sovereign treasury could significantly affect Bitcoin’s price and market sentiment.

What This Means for Bitcoin’s Future

The centralization of Bitcoin supply may raise concerns about the original decentralized vision of Bitcoin. However, Gemini’s report argues that this shift reflects the institutional maturity of the crypto market. As more of Bitcoin’s supply gets integrated into regulated structures, the market becomes more stable and transparent.

This could be beneficial for long-term investors and regulators alike. The increasing involvement of major financial institutions and governments could lead to more favorable policy developments, broader public acceptance, and enhanced market credibility.

On the flip side, the concentration of BTC in fewer hands also presents a risk. If these large holders decide to sell or shift assets, it could lead to sudden market volatility. Moreover, the ability of governments to influence the market through asset seizures or policy decisions adds another layer of complexity.

Conclusion

Bitcoin has come a long way from being a niche digital currency. With over 30% of its supply now held by centralized treasuries, the market is clearly undergoing a transformation. While the increasing institutional involvement brings more structure and legitimacy, it also challenges some of the ideals that gave rise to Bitcoin in the first place—namely, decentralization and financial sovereignty.

As Bitcoin continues to evolve, the role of centralized institutions will likely grow even further. For investors, understanding this dynamic is crucial. It not only impacts supply and demand but also shapes how Bitcoin will be used, regulated, and perceived in the years to come.