I think it's all part of the plan to takeover Bitcoin (a silent takeover). We can all be relaxed for now, since governments and institutions combined hold less than 1m BTC. That makes around 4.8% of the circulating supply. The rest is in the hands of exchanges and the people.
~snip~
You're not exactly up to date with the numbers, because back in early July, US-based ETFs alone held around 1.24 million BTC, which is roughly 6%, and if you add the 3% held by Strategy and everyone else we know and don't know about, then that figure definitely exceeds 10% of the max supply.
In addition, everything held by CEXs is centralized, it can be frozen or hacked at any time, so I don't consider it safe.