The rise of institutional players in the bitcoin space has raised concerns about the potential impact on the cryptocurrency's original decentralized vision.

As companies like BlackRock and Fidelity offer bitcoin exposure through ETFs, questions arise about whether these institutions might co-opt the asset's premise.

Roundtable anchor, Rob Nelson, explored this issue with David Duong, Head of institutional research at Coinbase, and Kelly Kellam, Director of BitLab Academy, discussing whether institutional dominance poses a risk to bitcoin's core principles.

David Duong addressed the concerns by clarifying that institutional ownership does not necessarily lead to control of the bitcoin network.

"Technically owning bitcoin doesn't actually give you access to anything," Duong explained, adding that the real control lies with miners who secure the network. He emphasized that while institutions may accumulate bitcoin, they often do so on behalf of clients, which limits their influence on the network itself.

Rob Nelson further questioned whether institutional players could influence bitcoin's role as a currency, potentially leading to a more centralized system. Kelly Kellam responded by sympathizing with the concern, noting that bitcoin was designed to offer more access to individuals outside of traditional financial structures. "If institutional players hold enough of it, you centralize it enough, you go ultimately back to the old way," Nelson remarked.

Kellam agreed with the sentiment but highlighted the importance of self-custody for those seeking true financial independence. "There is a need... to own your cold storage, your own crypto cold storage, your own bitcoin," he stated. He emphasized that while ETFs offer accessibility to certain demographics, particularly older investors, younger generations should prioritize learning how to manage their own bitcoin holdings.

Despite the potential downsides, Kellam acknowledged the value ETFs bring to the market, particularly for less tech-savvy investors. "A 94-year-old individual is more likely... to get access through an ETF," he said, adding that ETFs can serve as a practical entry point for some investors. However, he reiterated that financial sovereignty remains crucial for those committed to bitcoin's original ethos.