The growing popularity of Bitcoin ETFs and treasury companies is reshaping how investors hold Bitcoin — raising questions about the core principle of "not your keys, not your coins." Bitcoin exchange-traded funds (ETFs) and other institutional Bitcoin products may be reshaping a core crypto ethos rooted in Satoshi Nakamoto’s original vision. According to onchain data, Bitcoin self-custody has been steadily declining since January 2024 — the same month Bitcoin spot ETFs were approved. After nearly 15 years of growth, the creation of new Bitcoin (BTC) addresses is slowing down, while active addresses have dropped sharply from nearly 1 million in January 2024 to around 650,000 in late June, reaching levels not seen since 2019. “Since spot ETFs became available the growth rate of self-custody users has been in decline,” said on X analyst Willy Woo. Read more
The lack of yield-bearing options for US-regulated stablecoins under the GENIUS bill will drive investors to search for interest elsewhere, analysts said. The US fresh stablecoin legislation could create more demand for Ether (ETH) and decentralized finance applications, which are primarily based on the Ethereum network, according to analysts. The GENIUS bill, signed into law by US President Donald Trump on Friday, bans yield-bearing stablecoins, cutting off interest-earning opportunities for institutions and retail traders. This type of stablecoin generates interest or returns for the holder through yield-generating mechanisms, like staking or lending. According to crypto analyst Nic Puckrin, the removal of yield on stablecoins “is great news for Ethereum-based DeFi as the main alternative for passive income generation." Read more