- Spot Bitcoin ETFs have accumulated inflows of more than $22 billion, reflecting strong market demand.
- Retail investors now own 80% of the total assets in Bitcoin ETFs, generating significant interest.
Discover Bitcoin since their introduction [BTC] exchange-traded funds (ETFs) have seen a remarkable rise in popularity, amassing cumulative inflows that have eclipsed $22 billion.
Among the leaders, BlackRock’s IBIT stands out with an impressive inflow of $23 billion, while Grayscale’s GBTC has seen notable outflows totaling $20 billion.
As expected, recent momentum is in BTC ETFs continued with net inflows of nearly $1 billion recorded last week, marking the highest demand in the past six months.
Managers weigh in…
In light of the significant success of spot Bitcoin ETFs, Nate Geraci, president of ETF Store, took to X to share his insights, stating:
Source: Nate Geraci/X
Charles Edwards, founder of Capriole Investments and The Ref, joined the conversation and commented:
Source: Charles Edwards/X
Are retail investors driving the Bitcoin ETF market?
Although spot BTC ETFs offer opportunities for institutional investors, recent insights from crypto exchange Binance show that retail investors are significantly driving the growing demand.
According to them reportretail participants now own as much as 80% of the total assets in these ETFs, underscoring their crucial role in the market’s upward momentum.
This trend highlights a notable shift in investment dynamics, with individual investors not only being active but also generating significant interest in Bitcoin through these financial instruments.
The report noted:
“Spot Bitcoin (“BTC”) exchange traded funds (“ETFs”) have accumulated over 938.7K BTC (~US$63.3 billion), and when including other similar funds, this figure includes 5.2% of the total supply of Bitcoin.”
What else is going on?
The report further highlighted a significant increase in activity within crypto ETFs, with net inflows exceeding 312,500 BTC (approximately $18.9 billion) and positive inflows recorded in 24 of the past 40 weeks. On average, these ETFs remove approximately 1,100 BTC from circulation every day, reflecting a proactive buying approach.
This decrease in supply, combined with rising demand, could push Bitcoin prices higher, signaling growing adoption of Bitcoin investing through ETFs and a notable shift in market dynamics.
Bitcoin ETFs vs Gold, Ethereum ETFs
That said, the report also shows that spot BTC ETFs have significantly outperformed early gold ETFs, with net inflows of approximately $18.9 billion within a year, compared to just $1.5 billion for gold ETFs. This surge has attracted more than 1,200 institutional investors to Bitcoin ETFs, a notable increase from the 95 institutions in Gold’s first year.
Ethereum, on the other hand [ETH] ETFs have been struggling, experiencing outflows of approximately 43,700 ETH (approximately $103.1 million) and negative outflows in eight of the past eleven weeks.
Read Bitcoin’s [BTC] Price forecast 2024–2025
Therefore, Bitcoin ETFs have a more substantial impact on market dynamics when adjusted for spot trading volume, reflecting stronger demand from institutions.
These trends correspond to an increase in the price of BTC to $68,266.17, following a 1.87% increase in the past 24 hours and a monthly gain of 4.38%. CoinMarketCap.
