Institutional Bitcoin Holders Face Huge Custody Fees in 2025
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 01 2026- Market Volatility Impact: In 2025, Bitcoin surged from $94,000 to $126,200, yet holders faced negative returns due to custody fees, highlighting market uncertainty and the hidden costs of volatility.
- Custody Fee Burden: Institutional custody fees ranged from 10 to 50 basis points, leading to over $1 billion in losses for positions that ended flat, significantly impacting overall returns and capital efficiency.
- Yield Infrastructure Maturity: Bitcoin-native yield infrastructure matured in 2025, offering 2-7% APY, yet most institutions failed to leverage this opportunity, resulting in idle capital and missed revenue potential.
- Strategic Adjustment Necessity: Given the burden of custody fees and market fluctuations, institutions must optimize balance sheets by pairing Bitcoin exposure with yield generation to offset costs and enhance financial performance.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
