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Over a third of Bitcoin’s circulating supply is now held by centralized treasuries, including centralized exchanges, exchange-traded funds (ETFs), and governments. Recent data reveals that over 30% of Bitcoin’s circulating supply is controlled by just 216 centralized entities across six key categories: centralized exchanges, ETFs and funds, public companies, private companies, decentralized finance (DeFi) protocols, and governments. This trend highlights the growing role of institutional players in Bitcoin’s ecosystem.

Bitcoin’s Institutional Consolidation

The consolidation of Bitcoin into institutional hands has coincided with its rapid price appreciation over the years. From trading below $1,000 in 2015 to surpassing $100,000 today, Bitcoin’s value growth reflects its acceptance as a strategic, long-term asset among major institutions. Notably, within most categories (excluding private companies), the top three entities hold between 65% to 90% of the total assets. This demonstrates the significant influence of early movers, particularly in the DeFi, public company, and ETF sectors, in shaping Bitcoin’s institutional adoption trajectory.

Shifting Bitcoin Balances

One notable trend highlighted in the report is the decline in Bitcoin balances on centralized exchanges (CEXs) over the past two years. While this has often been interpreted as a potential supply shortage, the majority of that Bitcoin has transitioned to ETFs and funds, especially U.S. spot ETFs. Since June 2021, the total Bitcoin held by the spot trading sector has remained relatively stable, fluctuating between 3.9 million and 4.2 million BTC.

This consistency suggests that the reduction in exchange balances reflects a structural redistribution of Bitcoin custody rather than a decrease in overall supply. The increasing share of Bitcoin held by ETFs is a clear indicator of growing adoption by traditional finance (TradFi) institutions. Despite this shift, the total liquidity available for spot buyers has remained largely unchanged.

The Role of the U.S. Strategic Bitcoin Reserve

Another key development driving institutional confidence in Bitcoin is the creation of the U.S. Strategic Bitcoin Reserve (SBR). This initiative has positioned Bitcoin as a sovereign-grade asset, further solidifying its status in the financial ecosystem. Following the SBR announcement, both public and private companies have significantly increased their Bitcoin acquisitions, signaling strong institutional trust in the asset’s long-term potential.

“The establishment of the U.S. Strategic Bitcoin Reserve is a major milestone, elevating Bitcoin’s status as a sovereign-grade asset and fostering greater institutional adoption.”

A Structural Shift in Bitcoin’s Market Dynamics

The report concludes that with over 30% of Bitcoin’s circulating supply now held by centralized entities, the market has experienced a structural shift driven by long-term investments and strategic custody practices. While early adopters continue to dominate holdings, Bitcoin’s growing acceptance as a sovereign-grade asset has fundamentally altered its market landscape.

As custody transitions from exchanges to ETFs and other institutional custodians, the overall supply available for spot trading has remained stable. This balance underscores Bitcoin’s resilience and its increasing integration into the portfolios of institutional investors worldwide.

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