Bitcoin exchange-traded products (ETFs), as well as other Bitcoin products for institutions, may be shaping a cryptoethos at the heart of Satoshi Nakamoto’s original vision. 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 Bitcoins (New)BTCAddresses is slowing, while the number of addresses that are active has fallen sharply, from around 1 million addresses in January 2024 down to about 650,000 addresses in June. These levels have not been seen since 2019.
“Since spot ETFs became available the growth rate of self-custody users has been in decline,” said Willy Woo, analyst at on X.
Data shows a significant behavioral change as investors choose institutional custody options like ETFs over managing their private wallets.
This trend is a natural part of Bitcoin’s integration into traditional finance as more investors enter the crypto-space via BTC funds. 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,” An active member of the community wrote On X.
Bitcoin ETFs: The convenience and rise of Bitcoin ETFs
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. They did not require them to deal with wallets, exchanges, private keys, etc. These funds offered a variety of tax benefits and assured secure custody along with traditional brokerage platform ease.
From the very beginning, there was a strong demand for Bitcoin ETFs. In the first 18-month period, Bitcoin spot ETFs experienced around $50 billion in net inflowsBlackRock IBIT is the leader 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. Now, it holds more than 700,000 BTC – nearly 100,000 BTCs more than Fidelity’s 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, however, are not the only gateway into 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. ETFs are similar in that they remove the need to interact directly with exchanges or manage private keys, but provide institutional grade custody and regulatory oversight.
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Source: cointelegraph.com
