Most Bitcoin Still Belongs to Individuals, But Institutions Are Catching Up: Research

Who truly holds the reins of the Bitcoin economy? Is it the passionate individual, safeguarding their digital assets with steadfast conviction, or are the colossal institutional players quietly amassing control, shifting the very foundation of this decentralized revolution?

Recent research from River, a U.S.-based Bitcoin financial services firm, offers a compelling glimpse into this evolving landscape. Their August 25, 2025, estimates confirm that individual holders still command the majority of Bitcoin’s circulating supply. However, a significant and undeniable trend is underway: institutional adoption is accelerating, steadily increasing its footprint in the Bitcoin ecosystem.

The Shifting Sands of Ownership

Understanding who owns Bitcoin provides critical insights into market stability, future price dynamics, and the asset’s long-term trajectory. River's comprehensive analysis breaks down the distribution, painting a clear picture of the current ownership structure.

Individuals: The Enduring Foundation

Despite the growing presence of corporate and governmental entities, the individual investor remains the backbone of Bitcoin. River estimates that individuals control approximately 65.9% of the circulating BTC, accounting for a staggering 13.83 million coins. This category encompasses a broad spectrum, from dedicated self-custody advocates to those holding Bitcoin within exchange accounts. This dominant individual ownership underscores Bitcoin’s foundational ethos of decentralization and individual sovereignty.

The Institutional Ascent: Funds, Businesses, and Governments

While individuals hold the majority, the institutional sector's share is expanding, signaling a maturation of the asset class. Investment funds and Exchange-Traded Funds (ETFs) collectively manage about 7.8% of the total supply, or 1.63 million BTC. These vehicles serve a crucial role, providing regulated access for a wider range of investors and pension funds. Businesses, including corporate treasuries now holding Bitcoin as a balance-sheet asset, account for another 6.2% of the supply, totaling 1.30 million BTC. This corporate embrace reflects a growing recognition of Bitcoin as a legitimate store of value and strategic asset.

Even governments are making their mark, holding an estimated 1.5% of the supply, or 306,000 BTC. These sovereign holdings, often acquired through various means like seizures or strategic investments, add another layer of complexity to Bitcoin's ownership profile.

Beyond the Living Supply: Lost and Legendary Holdings

The research also accounts for Bitcoin that is no longer in active circulation. An estimated 7.6% of the supply, or 1.58 million BTC, is considered lost due to unrecoverable private keys or forgotten wallets—a poignant reminder of early-era challenges. Furthermore, the legendary holdings attributed to Satoshi Nakamoto and early miners (Patoshi patterns) are pegged at approximately 4.6%, or 968,000 BTC. These coins, largely unmoved for over a decade, represent a significant portion of Bitcoin’s history, yet remain outside the active market.

Finally, about 5.2% of the total supply, roughly 1.09 million BTC, is yet to be mined. This remaining supply will gradually enter circulation until Bitcoin's hard cap of 21 million coins is reached, reinforcing its scarcity and programmed monetary policy.

Why This Matters to Your Investment Strategy

This evolving ownership structure isn't just an academic exercise; it has tangible implications for every Bitcoin holder and prospective investor. The sustained dominance of individual holders suggests a continued grassroots appeal and resilience, while the increasing institutional participation points towards greater market liquidity, sophisticated trading strategies, and potentially, reduced volatility over the long term. As more large entities enter the space, Bitcoin becomes further integrated into the global financial system, potentially enhancing its perceived legitimacy and stability.

For you, this means recognizing that market drivers are diversifying. While individual sentiment still holds sway, institutional actions, such as large-scale purchases or sales by ETFs and corporate treasuries, are becoming increasingly influential. Consider this as you formulate your own strategy: a robust understanding of these dynamics can help you make more informed decisions, whether you're dollar-cost averaging, actively trading, or simply holding for the long haul. Diversifying your portfolio and maintaining a long-term perspective remain sound principles in an increasingly institutionalized, yet still fundamentally decentralized, asset class.

Embrace the Evolution

Bitcoin's journey is a testament to its dynamic nature. From its inception as a cypherpunk ideal to its current status as a global financial asset, the landscape is ever-changing. Understanding who holds Bitcoin today, and how that is shifting, empowers you to navigate this fascinating market with greater clarity. Stay informed, adapt your perspective, and continue to engage with this revolutionary technology. Your role, as an individual participant, remains vital in shaping Bitcoin's future.