Recent changes in the Bitcoin market may indicate new trends in investor behavior. Specifically, the rise in the popularity of ETFs and institutional solutions is noted against a backdrop of decreasing self-custody of Bitcoin.
Decline of Bitcoin Self-Custody
Data shows that since January 2024, there has been a decline in the number of users choosing to self-custody Bitcoin. Active addresses dropped from nearly 1 million at the beginning of the year to around 650,000 by the end of June, reaching levels not seen since 2019. According to analyst Willy Woo, "since spot ETFs became available the growth rate of self-custody users has been in decline."
Popularity of Bitcoin ETFs
The launch of Bitcoin ETFs by companies like BlackRock, Fidelity, and Grayscale marked a crucial moment for cryptocurrency. ETFs provide investors with convenient and regulated access to Bitcoin without the need to manage wallets. In the first 18 months, ETFs attracted around $50 billion in net inflows, with BlackRock's IBIT becoming the largest, managing $83 billion as of July 2025.
Expansion of Institutional Participation
ETFs are not the only pathways into Bitcoin for institutions. The number of public companies holding Bitcoin as a strategic asset increased to 125 by the end of Q2 2025, a 58% rise. Currently, over 250 organizations, including public companies and funds, hold Bitcoin on their balance sheets, providing options for institutional investors without the need for direct interaction with exchanges.
An analysis of current trends indicates that the rise of institutional solutions and Bitcoin ETFs is significantly changing investor behavior and approaches to cryptocurrency storage. These changes may have serious implications for the core values of Bitcoin as envisioned by Satoshi Nakamoto.
