Institutions Now Hold 31% of All Bitcoin, Gemini Warns of Centralization Risks

Crypto exchange Gemini has released a new report showing that centralized Bitcoin treasuries, such as governments, ETFs, and public companies, hold around 31% of the circulating Bitcoin supply, with this revealing an increasing trend in institutional adoption.

This accumulation of 6.1 million BTC, valued at $668 billion, shows the changing nature of Bitcoin as a strategic asset while raising concerns about concentration and its impact on Bitcoin’s decentralized framework.

Governments and Firms Fuel Bitcoin Institutional Surge  

As per the Gemini report, published on June 11, 2025, 30.9% of the circulating supply of Bitcoin is controlled by centralized groups. The 6.1 million BTC, worth $668 billion, represents a 924% increase over the past decade, driven by Bitcoin’s price rise from under $1,000 to over $100,000. 

Sovereign treasuries, often acquiring Bitcoin through legal seizures, account for a major share with minimal market activity. In contrast, ETFs and public companies dominate, with the top three companies in these sectors controlling 65%-90% of their respective holdings.

BTC Treasury Holdings (Source: Gemini Report)

The U.S. Strategic Bitcoin Reserve, established in early 2025, is one trend that has contributed to the interest in BTC. A White House fact sheet from March 6, 2025, details plans to acquire Bitcoin, with proposals suggesting 200,000 BTC annually for five years, in a decision toward making Bitcoin a national asset. 

USA and UK Treasury Holdings (Source: Gemini Report)

“This marks a turning point in institutional adoption,” Gemini researchers stated, noting Bitcoin’s increased integration into traditional finance. Corporate treasuries are also expanding, with Hashdex reporting 144 companies, including 114 publicly traded firms, holding nearly 24% of institutional and ETF Bitcoin.

Institutional Adoption Replaces Volatility with Stability

The concentration of Bitcoin in institutional holdings is an indicator of the maturing market, with Gemini researchers noting that price action is “more solid and less speculative-driven.” 

The reports noted that institutional adoption has also contributed to reduced volatility, with Bitcoin’s price stability above $100,000 in early June 2025 cited as proof. However, the report warns that sovereign holdings, described as “able to move markets when unlocked,” pose risks if big treasuries sell, potentially triggering a major price fluctuation.

BTC Price Performance (Source: Gemini Report)

Recent projections from Strategy‘s calculation of $330 billion of five years’ worth of Bitcoin buying point to continued institutional growth. Economic factors, such as a weakening U.S. dollar, are driving corporate acquisition as well and, by extension, further centralizing possession.

While institutional involvement may boost market confidence, it challenges Bitcoin’s decentralized ethos. Analysts caution that concentrated control could lead to market manipulation, though such risks remain theoretical.

The Cost of Growth: Is Bitcoin Losing Its Core Vision?  

The rise of centralized Bitcoin treasuries is a result of the growing acceptance of cryptocurrency as a legitimate asset class, with governments and corporations viewing it as a hedge against economic uncertainty. 

Top Entities Holding Bitcoin (Source: Gemini Report)

Gemini’s report notes that “institutions increasingly view Bitcoin as a strategic asset,” a stand that aligns with the U.S. Strategic Bitcoin Reserve. However, the concentration of 31% of the supply in centralized hands raises concerns about Bitcoin’s foundational principle of decentralization.

Market participants face the challenge of balancing stability with the risks of concentrated control.