ETFs and Corporate Wealth Pull Millions of BTC Away from Exchanges

Analysts say Bitcoin is increasingly sitting inside ETFs and corporate wealth.

Bitcoin funds held on central exchanges have returned to levels last seen in 2019. Data shared by crypto market analyst Dark Fost shows that exchange rates have been steadily declining since 2022.

This trend has accelerated following the collapse of the FTX exchange.

Bitcoin Supply Migration

In November 2022 alone, more than 325,000 BTC were withdrawn from exchange reserves as investors moved their assets to centralized platforms. As a result of these ongoing outflows, the total BTC reserves on the exchange accessible to retail investors have now dropped to around 2.7 million BTC.

Among these platforms, Binance alone accounts for about 20% of the remaining sites. When platforms primarily used by professional investors are included in the analysis, Coinbase Advanced ranks first, holding close to 800,000 BTC. However, this figure is still about 200,000 BTC below the level recorded in July 2025.

Dark Fost said that while the collapse of FTX played a major role in encouraging investors to hold assets in private funds, two additional developments contributed to the reduction of exchange balances. The first is the launch of Bitcoin exchanges in January 2024. At the time of their launch, the exchange reserves were still more than 3.2 million BTC. Since then, ETFs have accumulated about 1.3 million BTC, which represents about 6.7% of the total Bitcoin volume and is effectively removing that amount from the exchange.

The second factor is the growth of digital asset treasury companies (DATs) that hold Bitcoin as a reserve asset. Together, these companies now control about 1.1 million BTC, or about 5% of the total. Both ETF shares and corporate wealth represent a growing share of the Bitcoin supply held in structured financial vehicles.

“In the long run, this change can have a significant impact on market buying and pricing, even if these structural effects take time to fully manifest.”

Political Disagreement Prevents Outbreak

Against this shift in supply patterns, Bitcoin entered the second week of March under pressure as markets remained focused on escalating tensions in the Middle East. The cryptocurrency recently failed an attempt to break above $70,000 as the ongoing US-Iran conflict contributed to broader market uncertainty. Despite the pullback, crypto trader and analyst Michaël van de Poppe said that BTC’s current price action does not represent the worst case scenario.

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In his latest note on X, the trader noted that Bitcoin continues to trade within a range but described the performance as strong given the current market conditions. According to him, oil prices rose about 15% on Monday to the highest levels since 2022, while gold and commodities fell, and the Nasdaq fell sharply. Van de Poppe added that if the US stock market opens higher and oil prices begin to correct, Bitcoin could regain momentum towards $70,000.