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)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 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. 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 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, or exchanges. These funds offered tax benefits and secure custody along with traditional brokerage platform ease.
The market demand has been strong since the beginning. Spot Bitcoin ETFs grew by around $50 billion in net inflowsBlackRock IBIT leads the way with $53 Billion. IBIT was worth $53 billion on July 18, 2025. $83 billion in assets under managementIn just 200 days, 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 gateways 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.
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 firms offer holders a way to indirectly invest without dealing with exchanges or managing private keys. Like ETFs 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
