Bitcoin Retail Inflows Drop Sharply After ETF Launch

• Retail Bitcoin inflows dropped over fivefold as ETFs shifted investor activity in 2024.
• Small holders reduced exchange deposits, favoring ETFs and long-term self-custody.
• Institutional and corporate accumulation now drive Bitcoin’s price growth beyond $100K.

Bitcoin’s retail participation has declined over the past two years, with new data indicating a large decrease in inflows from small holders, often referred to as “shrimps,” to major exchanges like Binance. These investors, defined as wallets holding less than 0.1 BTC, have become less active since the rollout of U.S. spot Bitcoin exchange-traded funds (ETFs) in early 2024.

According to recent data from CryptoQuant, inflows from this segment have fallen to an average of 92 BTC per day, compared with 552 BTC at the start of 2023. The metric, based on a 90-day moving average, shows a drop of more than fivefold in small-holder deposits. This marks one of the largest declines in retail activity since the inception of Bitcoin.

Related: Bitcoin Retail Sentiment Collapses; Is This the Contrarian Bottom for BTC?

Impact of Spot ETF Launch

The introduction of spot Bitcoin ETFs has coincided with a clear structural shift in trading behavior. Before ETFs went live, daily inflows from small addresses averaged approximately 450 BTC. Following their launch in January 2024, deposits on Binance and other major exchanges declined, signaling that many retail investors have transitioned to indirect exposure through institutional investment products.

Market data show that the inflow decline aligns with broader changes in participation patterns. Between 2018 and 2023, shrimp inflows displayed annual spikes tied to market volatility. However, since 2024, these fluctuations have decreased as more investors opt for long-term custody options or shift away from direct trading activities.

Changing Market Composition

Analysts identify three primary factors that explain this contraction. A large portion of retail investors has opted for ETF exposure instead of holding or trading Bitcoin directly. Others who remain in the market are increasingly choosing to keep their assets off exchanges. Additionally, many who previously held under 0.1 BTC have since accumulated larger amounts, moving beyond the shrimp category.

Despite reduced retail inflows, Bitcoin’s price has continued to climb, surpassing $100,000 in 2025. This gap indicates that price momentum is now primarily driven by institutional accumulation and corporate treasury expansion, rather than small-scale trading.

Related: Bitcoin Price Today Steady at $108K, Ethereum $3,600, Solana $185 After Hong Kong ETF Approval