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 Bitcoins (New)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.
This data indicates a big behavioral shift, as many investors are opting for ETFs and other institutional custody products instead of private wallets.
This trend is part and parcel of Bitcoin’s integration with the financial system, 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,” Members of the community 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 offered institutional-level access to cryptocurrency without requiring investors to maintain wallets, exchanges, or private keys. 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. In the first 18-month period, Bitcoin spot ETFs experienced 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.
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 is now included on the balance sheets of public and private companies as well as ETFs, pension funds, and ETFs.
Bitcoin treasury firms offer holders a way to invest indirectly in Bitcoins without dealing with exchanges or managing private keys. Just like ETFs they remove the need to interact directly with exchanges or manage private keys, but provide institutional-grade security and regulatory oversight.
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Source: cointelegraph.com
