Bitcoin was designed as a peer-to-peer electronic cash system that bypassed traditional banks. Today, the vast majority of it is held by the exact institutions it was built to disrupt.
The ETF effect
The approval of spot Bitcoin ETFs allowed traditional investors to gain exposure without managing private keys. Capital flooded in, but the original ethos fundamentally shifted.
The loss of volatility
As asset managers buy up the supply, the extreme price swings that defined early crypto are flattening out. Institutional money acts as a massive anchor on the price.
The custody paradox
Most new buyers do not actually own Bitcoin; they own a share of an ETF. The original mantra of ‘not your keys, not your coins’ has been completely abandoned by the mainstream market.