Over 30% of Bitcoin Now Held by Centralized Entities
According to a recent report by Gemini and Glassnode, more than 30% of BitcoinS circulating supply is now controlled by 216 centralized entities. These include exchanges, ETFs, funds, public and private companies, DeFi protocols, and governments.
This shift coincides with Bitcoin’s price surge from under $1,000 in 2015 to over $100,000 today. It suggests that major institutions now see Bitcoin as a long-term asset.
Across most categories, the top three entities hold between 65% to 90% of the total assets. This highlights the critically important role of early movers, especially in DeFi, public companies, and ETFs.
Over the past two years, Bitcoin balances on centralized exchanges have decreased.Many mistakenly thought this was a supply shortage. However,most of this BTC has moved to ETFs and funds,particularly U.S. spot ETFs.
Since June 2021, the total BTC held by spot trading sectors has remained stable, between 3.9 million and 4.2 million BTC. This indicates a redistribution of custody rather than a reduction in supply.
The creation of the U.S. Strategic Bitcoin Reserve has also boosted institutional confidence. Following the SBR proclamation, public and private companies have increased their Bitcoin purchases.
The report concludes that with over 30% of Bitcoin’s supply held by centralized entities, the market has seen a structural shift. Despite custody moving from exchanges to ETFs and other custodians, the overall supply available for spot trading has remained stable.
For more details, check the Gemini and Glassnode’s Report.
