Since the beginning of 2024, there has been a noticeable drop in the number of active Bitcoin addresses, which coincides with the rollout of spot Bitcoin ETFs.
These Bitcoin ETFs provide a way for institutional investors to gain exposure to Bitcoin’s price movements without needing to hold or transfer the cryptocurrency on the blockchain itself.
The reduction in active addresses aligns with new all-time highs in Bitcoin’s value following ETF launches, highlighting that institutional investment via these funds is growing faster than direct retail involvement on the blockchain network.
Despite rising prices, onchain activity has diminished, suggesting that while institutions increasingly prefer ETF-based access to Bitcoin, individual retail users are less engaged with direct network transactions.
Since the beginning of 2024, there has been a noticeable drop in the number of active Bitcoin addresses, which coincides with the rollout of spot Bitcoin ETFs.
These Bitcoin ETFs provide a way for institutional investors to gain exposure to Bitcoin’s price movements without needing to hold or transfer the cryptocurrency on the blockchain itself.
The reduction in active addresses aligns with new all-time highs in Bitcoin’s value following ETF launches, highlighting that institutional investment via these funds is growing faster than direct retail involvement on the blockchain network.
Despite rising prices, onchain activity has diminished, suggesting that while institutions increasingly prefer ETF-based access to Bitcoin, individual retail users are less engaged with direct network transactions.