For the first time in Bitcoin’s history, self-custody rates are falling. The share of Bitcoin supply held directly by individuals in private wallets has dropped to approximately 49%, down from around 78% in late 2022, according to Glassnode data cited by Bitcoin Magazine.
Where did all the self-custody go
Spot Bitcoin ETPs and ETFs now collectively hold approximately 1.3 million BTC, representing about 6.4% of the total circulating supply. Public corporations have joined the party too. Companies collectively hold more than 1 million BTC across various entities, each with holdings of at least 1,000 BTC.
The FTX lesson nobody remembered
In November 2022, FTX collapsed spectacularly, and the crypto world collectively agreed that trusting third parties with your coins was a terrible idea. “Not your keys, not your coins” wasn’t just a slogan. It was a battle cry.
