This means that, based on data by Gemini and Glassnode, there are only 216 centralized entities in possession of over 6.1 million Bitcoin, or six main types of holders. These are crypto exchanges, ETFs, publicly traded companies, and private firms, DeFi protocols, and government bodies. That is a 10-fold rise in institutional ownership of Bitcoin in the last 10 years, with centralized exchanges, headed by Binance, as the largest stakeholder with a rendezvous of over 3 million BTC.
The Impact of ETF on the Market
Since its introduction in 2024, Bitcoin ETFs have greatly altered market dynamics. Such products had one of the highest inflows to any financial product in recent years, with more than 1 BTC accumulating. The iShares Bitcoin Trust issued by BlackRock currently ranks second in the list of Bitcoin balances following the holdings of Satoshi Nakamoto, and it demonstrates how the institutional products are transforming the ownership structures.
Exchange Balances Shift to Custody Solutions
Bitcoin is leaving the exchange wallets and moving to institutional-quality custodial systems. Although the balance on centralized exchanges has fallen throughout the last year, this Bitcoin has not vanished off the market, but instead has entered ETFs and regulated funds. This structural change reproduces increasingly widespread institutional demand and preference towards regulated custody services.
Market Maturity and Reduced Volatility
Since 2018, the realized volatility of bitcoin has steadily decreased, and the introduction of ETFs strengthened this stability due to the steady inflows. Trading is becoming more centralized via exchanges, ETFs and regulated derivatives instead of on-chain. This development is an indication that Bitcoin is maturing to meet the existing financial infrastructure as institutions are taking it as a strategic store of value.
