Research noteCR-2026-0505
Custody concentration is the quiet risk
Diversified exposure held through a very undiversified set of custodians.
71%▲ +4ppassets at top three custodians
6 minInstitutional Crypto
Institutional requirements narrowed the field of acceptable custodians to a handful, and assets followed. The result is portfolio diversification sitting on top of infrastructure concentration.
Most risk frameworks model price and liquidity carefully and treat custody as binary. It is not binary.