At least 400,000 fewer Bitcoin are now held on exchanges compared with this time last year, a development market observers view as bullish, according to analytics platform Santiment.
Since Dec. 7, 2024, over 403,000 BTC—around 2% of the total supply—have been withdrawn from exchanges, Santiment noted in a Monday post on X, referencing data from its Sanbase dashboard.
Investors often move Bitcoin off exchanges into cold storage, which can make it less likely to be sold and may indicate long-term holding intentions.
“In general, this is a positive long-term sign. The less coins exist on exchanges, the less likely we’ve historically seen a major sell-off that causes downside pressure for an asset’s price.”
“As Bitcoin’s market value hovers around $90K, crypto’s top market cap continues to see its supply moving away from exchanges,” Santiment added.
Bitcoin is also flowing into ETFs
While much of the Bitcoin leaving exchanges is likely moving to long-term hodler wallets, Giannis Andreou, founder and CEO of crypto miner Bitmern Mining, noted that exchange-traded funds (ETFs) could also be absorbing a significant portion.
Using data from BitcoinTreasuries.net, Andreou highlighted that ETFs and publicly traded companies now hold more Bitcoin than all exchanges combined, following years of outflows and steady accumulation by these regulated vehicles.
“Institutional ownership has quietly entered a new phase: less liquid supply, more long-term holders, stronger price reflexivity, and a market increasingly shaped by regulated vehicles rather than trading platforms,” he said.
“This shift is bigger than people think. Bitcoin isn’t moving to exchanges anymore. It’s moving off them straight into institutions that don’t sell easily. The supply squeeze is building in real time.”
ETFs and publicly traded companies now hold more Bitcoin than exchanges
Crypto analytics platform CoinGlass confirms this trend, reporting that just 2.11 million BTC remained on exchanges as of Nov. 22, during a market correction when Bitcoin was trading near $84,600.
BitBo reports that ETFs hold over 1.5 million Bitcoin, while publicly traded companies control more than 1 million, together accounting for nearly 11% of the total Bitcoin supply.
