Recent research by Gemini and Glassnode reveals that over 30% of Bitcoin's (BTC) circulating supply, approximately 6.1 million BTC valued at $668 billion, is now held by institutional investors including governments, ETFs, public and private companies, centralized exchanges, and DeFi protocols.
This marks a significant increase of 924% in institutional holdings over the past decade, highlighting a growing trend of major entities viewing Bitcoin as a strategic store of value. The consolidation is concentrated, with the top three entities in most categories controlling between 65% and 90% of assets.
Notably, holdings on centralized exchanges have decreased over the last two years, shifting to ETFs and funds, particularly U.S. spot ETFs, which have maintained a stable BTC balance since June 2021. This shift indicates a redistribution of custody rather than a net reduction in supply available for spot trading.
The creation of the U.S. Strategic Bitcoin Reserve (SBR) has further bolstered institutional confidence, prompting increased Bitcoin purchases by public and private companies. Institutional investors' increased involvement has coincided with Bitcoin's price appreciating from below $1,000 in 2015 to over $100,000 today, reinforcing its acceptance as a sovereign-grade asset.
While sovereign treasury wallets move BTC infrequently, their holdings have the potential to influence market price when transactions occur. The overall market shows a structural shift with strategic long-term investments by centralized entities, indicating a maturing market with increased integration between Bitcoin and traditional finance.