Institutions hold 17.3% of BTC supply, fueling governance debate

Institutions now hold 17.3% of Bitcoin's circulating supply, a sharp increase from just 1.6% in 2020, according to Real Vision crypto market analyst Jamie Coutts. In a post on X, Coutts noted that as supply becomes more concentrated among institutions, their influence over the network's direction is growing. He highlighted that the debate over quantum defense and governance is intensifying. So far, MicroStrategy (MSTR) founder Michael Saylor is the only major institutional figure to have clarified a stance, advocating for investigation while deferring immediate action. Meanwhile, Fidelity, Galaxy, and Gemini have not announced any quantum migration policies. Coinbase today released a position paper supporting BIP-360, which proposes introducing a wallet format resistant to quantum computing attacks and enabling voluntary migration. However, the exchange remained silent on BIP-361, a proposal to preemptively freeze vulnerable BTC. Coutts suggested that with some large custodians beginning to move, other institutions will find it difficult to avoid taking a stance. He added that the governance issue surrounding Satoshi-era coins is a critical matter directly linked to the network's survival and that the debate is likely to become more serious.