In a surprising twist, centralized treasuries—spanning governments, exchange-traded funds (ETFs), and public companies—now hold a staggering 31% of Bitcoin’s circulating supply, a figure that translates to around $668 billion. This development, highlighted by a recent Gemini report, underscores an intriguing shift in Bitcoin ownership dynamics as of June 2025.
A Concentration of Power
The concentration of Bitcoin in centralized hands raises eyebrows among crypto purists who have long championed decentralization as a core tenet of blockchain technology. “This shift towards centralized control could reshape Bitcoin’s market dynamics,” notes Jane Thompson, a blockchain analyst at Crypto Insights. “It seems paradoxical for a decentralized currency to be held in large quantities by centralized entities.” This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
Governments, ETFs, and public companies, traditionally wary of Bitcoin’s volatility, are now diving headfirst into the crypto pool. The reasons? Diversification of assets, hedging against inflation, and, for some, a strategic move to exert influence over the digital currency market.
The Institutional Appetite
The allure of Bitcoin’s potential returns continues to draw institutional investors like moths to a flame. ETFs, in particular, have been instrumental in this accumulation spree. Recent regulatory approvals in the United States and Europe have paved the way for Bitcoin ETFs, making the digital currency more accessible to a wider investment audience. According to Gemini’s report, ETFs alone account for a significant chunk of the Bitcoin pie.
Public companies, not to be outdone, have also ramped up their Bitcoin holdings. Tesla, MicroStrategy, and Square are among those leading the charge, using Bitcoin as a treasury asset to diversify their portfolios. “The strategy is not just about riding the wave of crypto enthusiasm,” explains Mark Silva, a financial strategist. “It’s a calculated risk to protect against traditional market fluctuations.” As explored in our recent coverage of corporate Bitcoin treasuries, these holdings now control over 3% of the total BTC supply.
Implications and Speculation
The ramifications of such substantial centralized holdings are multifaceted. On one hand, the involvement of established entities lends a veneer of legitimacy to Bitcoin, potentially attracting more conservative investors. On the other, it heightens concerns about market manipulation and the potential for significant price swings should these entities decide to liquidate their holdings.
Crypto enthusiasts speculate on whether this trend will continue. Will centralized control lead to stability in Bitcoin’s notoriously volatile price, or will it exacerbate market fluctuations? The answer remains elusive, with experts divided on the issue. “We might be witnessing the institutionalization of Bitcoin,” muses Rachel Kim, a cryptocurrency market analyst. “But whether this is a boon or a bane is still up in the air.”
A Historical Perspective
Looking back, Bitcoin’s journey from a fringe asset to a mainstream financial instrument is nothing short of remarkable. Just a decade ago, Bitcoin was primarily the domain of tech-savvy individuals and small-scale investors. The past few years, however, have seen a seismic shift in perception, with Bitcoin now regarded as ‘digital gold’ by some of the world’s financial heavyweights.
This evolution has been driven by a complex interplay of factors, including technological advancements, increased regulatory clarity, and a growing recognition of Bitcoin’s potential as a store of value. The current concentration of Bitcoin in centralized treasuries is but the latest chapter in this ongoing narrative.
Looking Forward
As we ponder the future, the questions are many. Will the trend towards centralization continue unabated, or will a new wave of decentralization emerge? How will regulatory landscapes adapt to this new reality? And what role will emerging technologies, such as decentralized finance (DeFi), play in shaping Bitcoin’s future?
One thing is certain: the crypto world is at a crossroads. The decisions made today by centralized and decentralized players alike will shape the trajectory of Bitcoin for years to come. As the dust settles, many will be watching closely to see who will emerge as the new power brokers in the ever-evolving cryptocurrency landscape.
Source
This article is based on: Centralized Bitcoin treasuries hold 31% of BTC supply: Gemini
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
