Bitcoin products from the Bitcoin Exchange Trade Fund (ETF) and other institutions may be restructuring the core crypto spirit rooted in Nakamoto’s original vision. According to Onchain data, the independent Bitcoin version has been steadily decreasing since January 2024. The Bitcoin Spot ETF was approved for the same month.
After nearly 15 years of growth, the creation of new Bitcoin (BTC) addresses has slowed, but active addresses have dropped sharply from nearly 1 million in January 2024 to nearly 650,000, reaching levels not seen since 2019.
“Since Spot ETFs became available, the growth rate for independent users has been declining,” X Analyst Willy Woo said.
The data shows a major behavioral shift as more investors choose institutional custody solutions like ETFs instead of managing their private wallets.
This trend is part of the natural integration of Bitcoin into the traditional financial system, as more investors join the crypto space via BTC funds. However, for others it shows an individual sovereignty and a departure from the original purpose of Bitcoin.
“ETFs were not stealing users from cold storage. They opened the market to people trapped behind the wall of compliance,” a community member wrote to X.
Bitcoin ETF rise and convenience
The launch of Spot Bitcoin ETFs by companies such as BlackRock, Fidelity and Grayscale marked a turning point for Bitcoin.
ETFS regulated institutional-grade access for investors to cryptocurrency without the need to manage their wallets, exchanges or private keys. The funds also provided tax benefits along with the ease of traditional brokerage platforms, and promised safe custody.
Market demand was strong from the start. Within the first 18 months, Spot Bitcoin ETF saw a net inflow of around $50 billion, while BlackRock’s IBIT led the pack with $53 billion. By July 18, 2025, IBIT had grown to a $83 billion assets under management, tripling in just 200 trade days. It currently holds over 700,000 BTC, an increase of nearly 100,000 over Fidelity’s FBTC.
According to Bloomberg analyst Eric Balknas, IBIT became the fastest ETF in history, reaching $80 billion and achieving a milestone in 374 days.
Related: Metaplanet vs. Semler Scientific: Bitcoin’s biggest corporate whale race
Expanding institutional adoption
It’s not just a traditional gateway to BTC. In recent years, Bitcoin financing companies (companies or investment instruments that hold Bitcoin on their balance sheet as a strategic reserve asset) have evolved from a small number of high conviction players such as Strategy and Tesla to a wider institutional movement.
The number of public companies holding BTC had risen to 125 by the end of the second quarter of 2025. This is a surge of 58% from the last quarter. As of mid-2025, over 250 organizations currently hold BTC on their balance sheets, including public companies, private companies, ETFs, and pension funds.
Bitcoin finance companies offer holders an indirect way to invest in Bitcoin without managing private keys or dealing with crypto exchanges. Like ETFs, they eliminate the need for independent or direct interaction with crypto exchanges, while providing regulatory oversight and facility-grade custody.
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