The emergence of Bitcoin exchange-traded funds (ETFs) and institutional products is altering the foundational principles of cryptocurrency as envisioned by Satoshi Nakamoto. Since the approval of Bitcoin spot ETFs in January 2024, self-custody of Bitcoin has been declining. The number of new Bitcoin addresses is slowing, and active addresses have dropped from nearly 1 million in January to about 650,000 by late June, a level not seen since 2019. Analyst Willy Woo noted that the growth of self-custody users has waned since the introduction of spot ETFs, indicating a shift towards institutional custody solutions. This trend reflects Bitcoin's integration into traditional finance, attracting more investors through BTC funds, though it raises concerns about individual sovereignty. The launch of ETFs by firms like BlackRock and Fidelity has provided regulated access to Bitcoin, resulting in significant inflows. Additionally, the number of public companies holding Bitcoin has surged, offering indirect investment opportunities without the complexities of self-custody. Read more AI-generated news on: https://app.chaingpt.org/news

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