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 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, analyst at on X.
This data indicates a big behavioral shift, as many investors are opting for ETFs and other institutional custody products instead of private wallets.
As more and more people enter the crypto world via BTC, the trend will continue. Some, however, believe that it is a step away from Bitcoin’s original intention and the 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: 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 offered institutional-grade, regulated access to cryptocurrency for investors, without the need 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. 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. 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.
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 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
