Retail Bitcoin Deposits to Binance Drop 80% as ETFs and Institutions Drive Market Activity

Small Bitcoin holders have sharply reduced exchange activity, with daily deposits from wallets holding less than 0.1 BTC falling from approximately 552 BTC in early 2023 to 92 BTC currently, according to CryptoQuant data. The shift follows the January 2024 launch of spot Bitcoin ETFs, which provided regulated exposure channels that reduced direct exchange interaction. ETF flows and corporate treasury purchases have become the primary drivers of network demand, replacing traditional retail trading activity.