The funds exchanged by Bitcoin Exchange (ETF) and other Bitcoin institutional products may reshapter a major crypto ethos rooted in Satoshi Nakamoto’s original vision. According to Onchain data, Bitcoin’s self-custody has continued to decline since January 2024-in the same month the Bitcoin spots ETF spots.
After nearly 15 years of growth, the Creation of the new bitcoin (Btc) Addresses slow down, as active addresses dropped dramatically from nearly 1 million in January 2024 to 650,000 in late June, reaching levels that have not been seen since 2019.
“Since spots ETFs can use the growth rate of self-custody users drops,” Says To X analyst Willy Woo.
The data suggests a major conduct of conduct because more investors choose for institutional care solutions such as ETFs instead of managing private wallets.
The trend is part of Bitcoin’s natural integration in the traditional financial system as more investors join the crypto space through BTC funds. For others, however, it marked a removal from the individual sovereignty and original purpose of Bitcoin.
“The ETFs did not steal users from cold storage … They opened the market to those locked behind the compliance walls,” a community member write In X.
The rise and convenience of bitcoin etf
Launching the Bitcoin ETF spot by companies such as Blackrock, Fidelity and Grayscale has marked a point for Bitcoin.
ETFs have given investors regulated, accessing grade-institution in cryptocurrency, without the need for managing wallets, exchanges or private keys. Funds also offer tax advantages and promise safe caution, along with the ease of traditional broker platforms.
Market demand is strong from the beginning. Within the first 18 months, the spot bitcoin ETF saw the surroundings $ 50 billion in net inflowsThe Blackrock includes the Pack leading to $ 53 billion. On July 18, 2025, Ibit grew up $ 83 billion in assets under managementTripling in just 200 days of trading. It now holds more than 700,000 BTC, nearly 100,000 more than Fidelity’s FBTC.
According to Bloomberg Analyst Eric Balchunas, Ibit became the fastest ETF in history to reach $ 80 billion, achieving the milestone in 374 days, earlier in the previous note – 1,814 days – set by Vanguard’s Voo.
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Expanding the adoption of the institutional
Bitcoin ETFs are not the only traditional Gateway to BTC. In recent years, Bitcoin treasury companies-businesses or investment vehicles that hold Bitcoin to their sheets of balance as a strategic property owner-have changed from a number of high-convincing players such as strategy and Tesla to a wider institutional movement.
The number of public companies holding BTC increased to 125 by the end of Q2 2025 – a 58% advance from the previous quarter. Up to mid 2025, More than 250 organizationsIncluding public companies, private companies, ETFs and pension funds, are now holding BTC on their balance sheets.
Bitcoin treasury companies offer an indirect way to invest in Bitcoin without managing private keys or dealing with crypto exchanges. Like ETFs, they have eliminated the need for self-custody or direct contact with crypto exchanges, while providing administration of institutional regulation and custody.
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