A recent report reveals that centralized entities now control nearly one-third of Bitcoin’s supply. This shift towards greater centralization impacts market stability and raises questions about decentralization and custody. According to the June 2025 report, 216 significant Bitcoin stakes are held by these entities, including prominent ETFs like BlackRock and Fidelity, as well as public companies like MicroStrategy. This trend signifies a transition in Bitcoin’s ownership landscape from a predominantly decentralized asset. Centralization poses potential risks to market stability, with large institutions holding Bitcoin for strategic purposes rather than speculation, reducing volatility. This shift brings challenges concerning decentralization as concentrations might amplify influence over market mechanics and valuation. These trends mirror the significant rise of institutional holdings following the approval of Bitcoin ETFs in 2021, further highlighting the growing influence of these institutions. The potential outcomes include a more stable market but also greater power concentrated within central institutions, potentially shaping future cryptocurrency regulations.