Nothing, surpassing Satoshi's holdings doesn't mean they already able to control Bitcoin, because centralized exchanges own 2.3 Million of Bitcoin, yet we don't see any big change even they've accumulated more than Satoshi.

A big problem will happen in the future if US spot Bitcoin ETF report they've accumulated more than 21 Million Bitcoin. Even though we know it's impossible since the max cap is 21 Million, but they can create fake news if they've accumulated most of Bitcoin. There's no proof in on-chain if they've accumulated these numbers.

Thats a wild comparison to make. There is no relation between Satoshi's
holding and any other holding. It doesnt matter! I hold more Bitcoin than some
people and there are others who own more than me.

Its guite something that the spot ETF's have already been able to accumulate almost
1,000,000 Bitcoin. As demand increases so too will their holding. Its kind of inevitable
that they could/will become the biggest holders of Bitcoin.

Question then arises as to what happens if they hold 50% of the total supply?

that would be a funny joke because Bitcoin Cap is not even up to 21 Million in supply
So even if they do get all the Bitcoin in the world including lost and not yet mined they can never have more or even up-to 21 million Bitcoin.

The Pros is that Bitcoin becomes more legitimate in the eyes of the public and Would kinda reduce the psychological impact of satoshi having up-to 1 million BTC (doubt it's up-to) to some individuals who fear it's movement.
But it still wouldn't change anything since CEX are holding more than Satoshi did.

The Cons Would be it would get more expensive to get a Bitcoin in the future for new entrants if they do continue to accumulate more

Price centralization, in the sense that they could manipulate price and any news of them selling would affect the market in a short term.

I'm not against it and even believe it's bound to happen anytime soon with the rate they buying
And could be considered a plus to Bitcoin price and adoption but call me a pessimist, I don't really see how that's a better tomorrow though.
Yes more adoption but at what cost?

Nothing will change as long as Satoshi's Bitcoin remains the way they are. Satoshi have not moved the coins in the wallets that we can directly link to him so those Bitcoin have no significant impact on the market and the Bitcoin ecosystem in general. So, until those coins are moved, the market will treat them as if they were burnt so irrespective of the quantity of Bitcoin held by another whale, Satoshi's holding will not impact the market in any single way rather the market will always respond to the forces of demand and supply as it does now. I know there have been several rumors about the identity of Satoshi which I don't know if that would lead to anything. Whatever happens, until the coins in those wallets are moved, nothing changes. 

Those Bitcoin represent money poured by ETF investor. They can't just steal it without facing major legal fight and they only could sell it after investor sold their ETF. So i don't expect major price swing.


The obvious cons is more Bitcoin is in hands of centralized party.

Bitcoin price will definitely increase but the price to pay could be very high, and the worst case scenario is that Bitcoin will become centralized with the majority of Bitcoin supply in their hands. This issue has been discussed and warned about a lot since the first days of bitcoin ETF approval, and that's also why some of us are against ETFs and Wall Street's involvement in the market.

But at the end of the day, there is nothing we can do to stop them from interfering in the market because bitcoin is a free market and for everyone. The only thing we can do is adapt to the market situation because there will be no better solution for us.

Institutions holdings is not their own Bitcoin. They are just holding the funds of their customers since they are custodians. They don’t have any influence to sell their holdings on their own so there’s nothing wrong if they accumulate huge amount since it’s owned by their customers.

I view it as positive since many traditional investors are now trusting Bitcoin investment that’s why it keeps growing despite the current price. I’m sure Satoshi holdings is not worthy basis since the founder is not active for a long time.

I’m not sure either if Satoshi will resurface due to potential legal issue depending on his citizenship.

Clients of Bitcoin Spot ETFs only care about profit and they will sell their bitcoins through Bitcoin Spot ETFs in future. Because if they care more than profit, they will know that "It's not your private keys, it's not your bitcoins" and they will purchase and store bitcoins by themselves than relying on Bitcoin Spot ETFs and their custodian partners.

Well, it's different of sales from many investors than sale from a single holder but I don't know effects from a first case will be bigger or smaller than the second case. People perhaps will be more fearful with the second case because a single person can sell it all in short time while many investors will sell their bitcoins at different times and it can last several months in distribution phase.

Bitcoin value comes from its several specifications: security of Bitcoin private key (finding, brute-forcing a private key is like finding an atom in the universe), decentralization, utility and adoption, not only purely on supply and demand principle. It comes from lost bitcoins that can not be identified correctly but there are actually many bitcoin lost since 2009.

How is the 21 Million Bitcoin Cap Defined and Enforced?

People can speculate that with better adoption, but less bitcoins will appear from future Bitcoin block subsidy, people who join this market in future will participate in a "Fear Of Missing Out" train and it will help Bitcoin in value and price.

Equivalent Network Time
Value of future Bitcoin supply