Bitcoin exchange-traded funds (ETFs) are altering the core ethos of personal custody within the cryptocurrency space, as evidenced by data showing a decline in Bitcoin self-custody usage since the approval of spot ETFs in January 2024. New Bitcoin address creation is slowing down and active addresses have decreased sharply from nearly 1 million to around 650,000, reaching 2019 levels. Analysts note this reflects a behavioral shift towards institutional custody solutions like ETFs, which offer regulated access to Bitcoin without the complexities of managing wallets or private keys. Since their launch, notable ETFs like BlackRock's IBIT have experienced rapid growth, holding over 700,000 BTC and becoming the fastest ETF to reach $80 billion in assets. This trend also encompasses Bitcoin treasury companies, which allow businesses to hold BTC without needing to manage private keys, marking a broader institutional engagement with Bitcoin.

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