Bitcoin exits exchanges as ETFs absorb supply and holders remain bullish

According to market intelligence platform Santiment, there are at least 400,000 fewer Bitcoins on exchanges compared to the same period last year, which is a positive signal for the market.

Since December 7, 2024, over 403,000 Bitcoins (BTC) have disappeared from exchanges, which is approximately 2% of the total supply, Santiment he said in Monday’s post on X, citing data from the sanbase dashboard.

Users often move their Bitcoins from exchanges to cool storage wallets, which theoretically makes it harder to sell and could signal long-term plans to hold on to them.

“Overall, this is a positive long-term signal. The fewer coins there are on exchanges, the less likely it is that we have seen a major sell-off in the past that has put downward pressure on the asset price.”

“As Bitcoin’s market value hovers around $90,000, the cryptocurrency’s highest market capitalization continues to drive supply outflow from exchanges,” Santiment added.

A year ago, there were approximately 1.8 million Bitcoins on exchanges. Source: Saintly

Bitcoin is also moving into ETFs

While most Bitcoin on exchanges will likely return to hodlers’ wallets, Giannis Andreou, founder and CEO of cryptocurrency mining firm Bitmern Mining, said ETFs could also absorb these coins.

Citing data from BitcoinTresuries.Net, Andreou said that after years of outflows and quietly accumulating in the background, ETFs and public companies now hold more Bitcoin than all exchanges combined.

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“Institutional ownership has quietly entered a new phase: less liquid supply, more long-term holders, more price reflexivity, a market driven by regulated vehicles rather than trading platforms,” Andreou said.

“This shift is bigger than people think. Bitcoin is no longer moving to exchanges. It’s moving straight from them to institutions that don’t sell easily. The supply squeeze is building in real time.”

ETFs and private companies hold more Bitcoin than exchanges

CoinGlass cryptocurrency data analysis platform can be seen the same trend, with Bitcoin price held on exchanges at around 2.11 million as of November 22, when Bitcoin was experiencing a correction and trading at around $84,600.

*The value of bitcoin held on exchanges has declined steadily over the past year. Source:* *CoinGlass*

BitBo lists ETFs holding over 1.5 million Bitcoins and public companies holding over one million, representing almost 11% of the total supply.

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