$ADA
The quiet takeover of Bitcoin has already started. The numbers are clear: BlackRock now holds about 802,000 Bitcoin—roughly 4% of all that can ever be mined. Altogether, U.S. spot ETFs control around 1.25 million BTC, or about 6.3% of the total circulating supply.
More than $3 billion worth of Bitcoin has shifted from personal wallets to institutional custody, giving some investors access to tax deferrals between 20% and 37%. Meanwhile, Bitcoin’s 30-day volatility has dropped from 45% to 38% and is expected to settle between 30% and 35% by 2026.
The process is precise and calculated. Large holders are exchanging their Bitcoin for ETF shares without triggering taxes. This move removes supply from the open market and weakens direct price discovery. ETF providers also have the authority to decide which version of Bitcoin remains “valid” in the event of a network fork, giving them quiet control over future protocol decisions.
This growing concentration poses serious risks. With ETFs now holding a substantial share of Bitcoin’s supply, network security could be affected. If more than 10% of all Bitcoin ends up in custodial hands, the system could become resistant to change, potentially freezing its evolution.
Investors should be aware of these dynamics and take steps to safeguard their holdings.
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