400K Bitcoins Have Left Exchanges In The Past Year As Binance “Shrimp” Deposits Reach Record Low
The number of Bitcoins on exchange platforms has fallen by 400K coins in the past year as the amount of BTC deposited on Binance daily by “shrimps” has plummeted to a record low.
In a recent X post, on-chain analytics firm Santiment said that 403K BTC has moved off of exchanges in the past 12 months. This accounts for more than 2% of the crypto’s total supply.
Reduced Bitcoin Supply On Exchanges A “Positive” Sign For The Market
Usually, when investors withdraw BTC from exchanges, it suggests that they intend to hold for an extended period of time and have no intention to sell any time soon.
Santiment said that the recent trend of Bitcoin moving off of exchange platforms “is a positive long-term sign” for the market.
“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,” the firm said.
Bitcoin Retail Inflows To Binance Plunge To Record Low In 2025
Amid the withdrawal of BTC from exchange platforms, Bitcoin retail investors have also been sending fewer coins to Binance, the largest crypto exchange in terms of 24-hour trading volumes.
Data from the on-chain analytics platform CryptoQuant shows that investors holding up to 1 BTC have largely withdrawn from the trading scene.
“The activity of shrimps, meaning small Bitcoin holders (<1 BTC), has dropped to one of the lowest levels ever recorded,” CryptoQuant contributor Darkfost wrote in a recent QuickTake blog post.
Back in December 2022, daily inflows from Bitcoin shrimps to Binance alone reached around 2,675 BTC per day when measured using a 30-day Simple Moving Average (SMA), the contributor noted.
“Today, those inflows have collapsed to just 411 BTC, marking one of the lowest levels ever observed,” Darkfost added.
ETFs One Of The Main Reasons For The Trend Shift
Darkfost attributed the shift in Bitcoin shrimp activity to the launch of spot BTC ETFs (exchange-traded funds), which debuted in the US at the start of 2024.
“Since these products became available, the shrimps’ inflows to Binance have dropped from 1056 BTC to 411 BTC, a decline of more than 60%,” the analyst wrote.
“ETFs have provided a frictionless way to gain exposure to Bitcoin without dealing with private keys, wallet security, exchange accounts or the risk of mismanaging custody,” Darkfost continued.
“Of course, ETFs are not the only explanation, but they clearly contribute to a profound change in how retail participates in the market.”
US Spot Bitcoin ETFs See $60M Outflows
The US Bitcoin ETFs have attracted billions of dollars since their early 2024 debut. Among the funds, BlackRock’s IBIT product has led the charge, and has seen $62.546 billion in cumulative inflows thus far, data from Farside Investors shows.
The next-biggest spot Bitcoin ETF in that regard is Fidelity’s FBTC, with its $12.06 billion cumulative inflows.
Over the past four days, the Bitcoin ETFs have seen three days of outflows. In the latest trading session, investors withdrew $60.4 million from the products collectively.
US spot BTC ETF flows (Source: Farside Investors)
In the latest trading session, BlackRock’s IBIT was the only BTC ETF to see net daily inflows. Investors added $28.8 million to the fund’s reserves. However, this was not enough to offset the outflows from Fidelity’s FBTC ($39.4 million), VanEck’s HODL ($5.8 million), and Grayscale’s GBTC ($44 million).
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