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.
After almost 15 years of rapid growth, creation Bitcoin is a new currency (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 origins 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.
Launch of Bitcoin spot ETFs from companies such as BlackRock, Fidelity, and Grayscale was a major turning point in the history of Bitcoin.
ETFs provided institutional investors with a regulated way to access cryptocurrency without having to worry about managing wallets, private keys, exchanges or other services. These funds offered tax benefits and secure custody along with traditional brokerage platform ease.
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 managementIn just 200 trading sessions, the value of BTC has tripled. The company now has over 700,000 BTC – nearly 100,000 BTC more than Fidelity FBTC.
As per 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 don’t represent the only way to invest in 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.
BTCs are held by many public companies. increased to 125 by the end of Q2 2025 — a 58% surge from the previous quarter. As of mid‑2025, over 250 organizationsBTC now appears on balance sheets for public firms, private firms and ETFs as well pension funds.
Bitcoin Treasury companies allow holders to indirectly invest in Bitcoin, without having to manage private keys or deal with crypto exchanges. They are similar to ETFs in that they do not require self-custody, or any direct interactions with crypto exchanges. Instead, they provide regulatory oversight, and institution-grade custody.
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Source: cointelegraph.com
