Bitcoin ETFs and other Bitcoin institutional products could be changing the core crypto-ethos that Satoshi Nakamoto originally envisioned. According to onchain data, Bitcoin self-custody has been steadily declining since January 2024 — the same month Bitcoin spot ETFs were approved.
The growth of the company has been impressive. creation Bitcoin (New Bitcoin)BTCThe number of active addresses has dropped from almost 1 million in early 2024, to 650,000 by late June. This is the lowest level since 2019.
“Since spot ETFs became available the growth rate of self-custody users has been in decline,” said Willy Woo is a Willy X analyst.
Data shows a significant behavioral change as investors choose institutional custody options like ETFs over managing their private wallets.
As more and more people enter the crypto world via BTC, the trend will continue. Others, on the other hand, see it as a move away from Bitcoin’s origin and individual sovereignty.
“ETFs didn’t steal users from cold storage… They opened the market to those who were locked behind compliance walls,” A community member wrote On X.
Bitcoin ETFs are becoming more popular and convenient.
Bitcoin reached a new level with the launch of Bitcoin ETFs. Companies like BlackRock Fidelity Grayscale launched these products.
ETFs provided institutional investors with a regulated way to access cryptocurrency without having to worry about managing wallets, private keys, exchanges, etc. They also promised tax advantages, secure custody and the convenience of traditional platforms.
From the very beginning, there was a strong demand for Bitcoin ETFs. Spot Bitcoin ETFs grew by around $50 billion in net inflowsBlackRock IBIT leads the way with $53 Billion. IBIT grew to $53 billion by July 18th, 2025. $83 billion in assets under managementIt tripled in 200 days. Now, it holds more than 700,000 BTC – nearly 100,000 BTCs more than Fidelity’s FBTC.
The following is a list of Bloomberg analyst Eric Balchunas, IBIT became the fastest ETF in history to reach $80 billion, achieving the milestone in 374 days, far ahead of the previous record — 1,814 days — set by Vanguard’s VOO.
Related: Metaplanet vs. Semler Scientific: The race to become Bitcoin’s biggest corporate whale
Expanding institutional adoption
Bitcoin ETFs, however, are not the only gateway to BTC. In recent years, Bitcoin treasury companies — businesses or investment vehicles that hold Bitcoin on their balance sheets as a strategic reserve asset — have evolved from a handful of high-conviction players like Strategy and Tesla into a broader institutional movement.
BTC is held by a number of companies that are publicly traded. increased to 125 by the end of Q2 2025 — a 58% surge from the previous quarter. As of mid‑2025, over 250 organizationsBTC is now included on the balance sheets of public and private companies as well as ETFs, pension funds, and ETFs.
Bitcoin Treasury companies allow holders to indirectly invest in Bitcoin, without having to manage private keys or deal with crypto exchanges. They eliminate the need to interact directly with exchanges or self-store crypto assets, but provide institutional grade custody and regulatory oversight.
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Source: cointelegraph.com
