U.S. spot Bitcoin ETFs face steep volume drop as institutional holdings surpass 2,000 investors

Trading activity in U.S. spot Bitcoin exchange‑traded funds has collapsed, with daily volumes falling about 78% from their October 2025 peak of roughly $4.4 billion to a 30‑day average of $650 million‑$950 million, according to Glassnode data. Despite the slowdown, total assets under management remain between $78 billion and $100 billion, and cumulative trading since launch has neared $2 trillion.

At the same time, institutional participation is growing: Q1 2026 filings show around 2,000 institutional investors now hold Bitcoin through spot ETFs, up from roughly 1,975 the previous quarter. The products, launched in January 2024, eliminate the need for firms to manage private keys by using qualified custodians. Coinbase Custody alone safeguards about 84% of the Bitcoin held by U.S. spot ETFs, with Fidelity Digital Assets and Anchorage Digital serving as additional custodians for Fidelity and BlackRock funds respectively.