The Surge of Bitcoin ETFs in the United States: A New Era for Crypto Investments
In recent months, the introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States has sparked significant excitement in the global ETF arena. Since their launch in January 2024, these financial instruments have consistently set new benchmarks, illustrating their growing relevance and acceptance among investors. Among these, BlackRock’s iShares Bitcoin Trust, marked by the ticker symbol IBIT, has made headlines by rapidly amassing $80 billion in assets under management, a record-breaking achievement.
As Bitcoin ETFs continue to gain traction, their influence on the cryptocurrency investment landscape is becoming increasingly evident. According to insights from a well-known analyst on the social media platform X, many Bitcoin investors are now gravitating toward a more conventional approach to engaging with this leading cryptocurrency.
Questioning Bitcoin ETFs: A Departure from Decentralization?
Advertisement Banner
On July 18, crypto analyst Willy Woo took to X to highlight a notable trend: the growth rate of self-custody Bitcoin users has been on a decline over the past year. He attributes this shift to the emergence of spot Bitcoin ETFs, marking the end of a longstanding 15-year trend.
Woo’s observations are based on the Glassnode Entities Net Growth metric, which monitors the daily influx of new users to the Bitcoin blockchain network. Unlike simple address tracking, this metric focuses on entities—clusters of addresses controlled by single users. The metric estimates the gap between new entities and those with zero balances that previously held Bitcoin. Since 2023, and particularly following the debut of Bitcoin ETFs in the US, this metric has shown a downward trajectory.
Such a trend suggests that investors are increasingly favoring institutional crypto products like ETFs over direct purchases into personal crypto wallets. Woo cautioned that this shift might lead to a centralization of Bitcoin supply, counter to the decentralized vision set forth by Bitcoin’s creator, Satoshi Nakamoto. Nonetheless, Bitcoin ETFs serve as an entry point for those—especially older generations—who face challenges accessing crypto via traditional self-custody wallets.
As one community member on X remarked, “ETFs didn’t steal users from cold storage… They opened the market to those who were locked behind compliance walls.”
Current Bitcoin Price Overview
At the time of writing, Bitcoin (BTC) is valued at approximately $108,200, experiencing a 0.4% rise in the last 24 hours. This stability and growth reflect the ongoing interest and investment in Bitcoin as a viable financial asset.
Editorial Integrity and Process
At Bitcoinist, our editorial process is rooted in the commitment to deliver comprehensive, precise, and impartial content. Each piece undergoes rigorous sourcing and is meticulously reviewed by a team of leading technology experts and experienced editors. This ensures that our content remains trustworthy, relevant, and valuable to our readers, maintaining the highest standards of journalistic integrity.
