Bitcoin Active Addresses Decline Amid Rise of Spot BTC ETFs

Bitcoin's on-chain activity has decreased since the launch of spot Bitcoin exchange-traded funds (ETFs). Despite increased institutional inflows, active BTC addresses have declined. This suggests a shift in network participation.

Institutional adoption was expected to drive mass usage, but retail interest has waned.
ETF trading diverges from Bitcoin's core principles of asset control and decentralization.
Net inflows into major ETFs like BlackRock and Fidelity have been subdued, with potential momentum reversal anticipated due to macroeconomic factors.
The Federal Reserve has ended its Quantitative Tightening program, potentially favoring BTC as interest rate cuts loom.

Efforts are underway to enhance Bitcoin's ecosystem through decentralized finance (DeFi) initiatives:

Mintlayer's RioSwap introduces a Decentralized Exchange (DEX), enabling direct BTC movement into decentralized markets without wrapping or unbridging.
This development may usher in a new liquidity phase for BTC within DeFi, maintaining user control over assets.

Bitcoin