Why the Bitcoin self-leather is decreasing in the ETF era

Bitcoin (ETF) negotiated funds and other Bitcoin institutional products can reshape an ethics of central cryptography rooted in the original vision of Satoshi Nakamoto. According to ONCHAIN data, Auto -Custistody Bitcoin has regularly dropped since January 2024 – the same month, the ETF Bitcoin Spot have been approved.

After almost 15 years of growth, the creation new bitcoin (BTC) The addresses slow down, while active addresses fell heavily by almost a million in January 2024 to around 650,000 at the end of June, reaching the levels that we have not seen since 2019.

“Since ETF Spot has become available, the growth rate of self-works is in decline”, ” said On the analyst X Willy Woo.

The data report a major behavior change because more and more investors opt for institutional childcare solutions such as ETF instead of managing private wallets.

The trend is part of the natural integration of Bitcoin into the traditional financial system, as more and more investors join the cryptographic space via BTC funds. For others, however, this marks a gap in individual sovereignty and the initial goal of Bitcoin.

“ETFs did not steal users of cold storage … They opened the market to those who were locked up behind compliance walls”, a member of the community wrote on X.

The rise and convenience of Bitcoin ETF

The launch of Spot Bitcoin ETF by companies like Blackrock, Fidelity and Grayscale marked a turning point for Bitcoin.

ETFs have given regulated investors, quality access to cryptocurrency institution, without having to manage portfolios, exchanges or private keys. The funds also offered tax advantages and promised a secure guard, as well as the ease of traditional brokerage platforms.

Market demand was strong from the start. In the first 18 months, the Bitcoin Spot ETFs saw $ 50 billion in net entriesWith Ibit de Blackrock leading the pack at $ 53 billion. By July 18, 2025, Ibit had become 83 billion dollars of assets under managementTriplant in just 200 days of trading. It now contains more than 700,000 BTCs, almost 100,000 more than FBTC in Fidelity.

According to Bloomberg Analyst Eric Balchunas, Ibit has become the fastest ETF in history to reach $ 80 billion, reaching the milestone in 374 days, well in advance on the previous record – 1,814 days – set by Vanguard’s Voo.

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Expanding institutional adoption

FNB Bitcoin are not the only traditional BTC bridge. In recent years, Bitcoin cash companies – companies or investment vehicles that hold bitcoin on their balance sheets as a strategic reserve ratio – have gone from a handful of high conviction players such as Strategy and Tesla in a broader institutional movement.

The number of public companies holding BTC increased to 125 at the end of T2 2025 – an increase of 58% compared to the previous quarter. In mid-2010, Over 250 organizationsIncluding public companies, private companies, FNBs and pension funds, now hold BTC on their balance sheets.

Bitcoin cash companies offer holders an indirect means of investing in Bitcoin without managing private keys or dealing with crypto exchanges. Like ETFs, they eliminate the need for self-care or direct interaction with cryptography exchanges, while providing regulatory monitoring and institutional guard.

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