Bitcoin Whales May Embrace ETFs as Self-Custody Uptrend Falters

• Early Bitcoin holders trade spot positions for ETF shares, prioritizing wealth management integration.

• Onchain metrics show declining self-custodied Bitcoin, contrasting with ETF adoption surge.

• BlackRock’s iShares Bitcoin Trust leads with $88 billion in assets, fueled by regulatory changes enabling direct Bitcoin exchanges.

Discover how Bitcoin whales are embracing ETFs over self-custody in 2025, unlocking TradFi perks amid a shifting market. Stay informed on crypto trends and ETF impacts today.

What Is Driving Bitcoin Whales to Shift to ETFs?

Bitcoin whales, the earliest and largest holders of BTC, are increasingly converting their spot holdings to exchange-traded funds (ETFs) to access traditional financial services. This trend reflects a preference for convenience in wealth management, as reported by BlackRock executives, with over $3 billion in such conversions already facilitated. Onchain data further indicates a break in the 15-year uptrend of self-custodied Bitcoin, highlighting ETF growth’s role in this shift.

How Has the Self-Custody Trend in Bitcoin Changed?

The amount of Bitcoin held in self-custody has recently declined, ending a 15-year upward trajectory, according to analyst Willy Woo. This reversal coincides with accelerated adoption of spot Bitcoin ETFs, which offer institutional-grade custody and integration with existing financial portfolios. Robbie Mitchnick, BlackRock’s head of digital assets, notes that early adopters value the ability to maintain exposure through trusted advisors, despite relinquishing private keys. Supporting data from Bitbo shows ETF inflows surging this year, underscoring institutional demand. A recent U.S. Securities and Exchange Commission rule change has further enabled this by allowing in-kind creations and redemptions, facilitating direct ETF share swaps for Bitcoin rather than cash settlements. BlackRock’s iShares Bitcoin Trust (IBIT) dominates with over $88 billion in net assets, positioning it as a key beneficiary of this migration.

Inflows into spot US Bitcoin ETFs have surged this year. Source: Bitbo

While this shift provides perks like diversified investment tools, it raises questions about decentralization principles central to Bitcoin’s ethos. Experts emphasize that self-custody remains vital for long-term security, but the allure of TradFi infrastructure is proving compelling for high-net-worth individuals.

Frequently Asked Questions

What Advantages Do Bitcoin Whales Gain from ETF Conversions?

Bitcoin whales benefit from seamless integration with traditional wealth management, including advisory services and portfolio diversification, as highlighted by BlackRock’s Robbie Mitchnick. This conversion process has exceeded $3 billion, allowing holders to retain economic exposure without managing private keys directly.

How Are Spot Bitcoin ETFs Impacting Onchain Self-Custody?

Spot Bitcoin ETFs are accelerating a decline in self-custodied holdings, breaking a 15-year uptrend per Willy Woo’s analysis. This natural progression enables easier access to institutional tools while maintaining BTC exposure, ideal for investors seeking regulatory compliance and liquidity.

Key Takeaways

• Whale Migration to ETFs: Early BTC holders are converting spot positions to funds like BlackRock’s IBIT for TradFi conveniences, with $3 billion already processed.
• Self-Custody Decline: Onchain data reveals a 15-year trend reversal, driven by ETF inflows that outpace direct holdings growth this year.
• Regulatory Boost: SEC changes enabling in-kind ETF transactions are streamlining conversions and boosting market efficiency.

Conclusion

As Bitcoin whales continue shifting to ETFs and self-custody trends evolve in 2025, the integration of cryptocurrency with traditional finance gains momentum. This movement, exemplified by BlackRock’s dominant role and expert insights from figures like Robbie Mitchnick, signals broader institutional adoption. Investors should monitor these developments for opportunities in diversified crypto strategies, ensuring portfolios align with emerging regulatory and market dynamics.

Ripple-Backed Evernorth Plans Public Debut with XRP Focus

Evernorth Holdings, supported by Ripple Labs, is set to enter public markets via a merger with Armada Acquisition Corp. II, aiming to establish a dedicated XRP treasury operation. The transaction anticipates raising more than $1 billion, including $200 million from Japan’s SBI Holdings, alongside investments from Ripple, Kraken, Pantera Capital, and GSR. The resulting company will list on Nasdaq as XRPN, focusing on advancing XRP adoption in digital asset treasuries.

CEO Asheesh Birla emphasizes the strategic timing amid rising interest in such treasuries, though challenges persist as altcoin performance trails Bitcoin. David Bailey, CEO of Nakamoto, cautions that the space is cluttered with unclear narratives and underperforming projects, potentially complicating growth for XRP-focused entities.

Source: Asheesh Birla

This move underscores Ripple’s ongoing efforts to expand XRP’s utility, leveraging public market access to build institutional confidence. Analysts from sources like Bloomberg note that successful treasuries could enhance liquidity and real-world applications for XRP, despite market volatility.

Galaxy Digital Reports Robust Q3 Amid Crypto Bull Run

Galaxy Digital has delivered impressive third-quarter results, capitalizing on increased trading and institutional crypto interest. The firm recorded net income of $505 million and adjusted earnings of $629 million, propelled by digital asset gains and a 140% rise in quarterly trading volumes. Key highlights include managing an 80,000 BTC client transaction valued at approximately $9 billion in July, tied to estate planning objectives.

With $3.2 billion in equity—comprising $1.9 billion in cash and stablecoins—Galaxy demonstrates financial strength in a bullish environment. As institutional adoption accelerates, the company’s services are pivotal, handling large-scale operations that bridge traditional and crypto finance.

Source: Galaxy

Reports from financial outlets like Reuters affirm Galaxy’s position as a leader, with experts praising its ability to navigate high-volume deals securely. This performance reflects broader market maturity, where firms like Galaxy enable sophisticated investor strategies.

Wise Explores Stablecoin Integration for Payments

Wise, the global payments platform valued at $10 billion, is venturing into stablecoins by hiring a digital asset product lead focused on these assets. Product director Matthew Salisbury’s LinkedIn announcement seeks candidates experienced in stablecoin-based wallets and payments, aligning with Wise’s expansion into crypto services.

Stablecoins fit naturally with Wise’s model of low-cost transfers across 160+ countries, potentially enhancing cross-border efficiency. This step follows industry trends where stablecoins offer stability and speed for international remittances.

Source: Matthew Salisbury

Insights from fintech analysts at Forbes suggest Wise’s move could democratize stablecoin access for consumers, building on its established trust in currency exchange. As regulatory frameworks evolve, such integrations may redefine global payments landscapes.