This article is also available in Spanish.
Bitcoin ETFs ended last week on another positive note with net inflows of $997.70 million. Demand is at an all-time high In six months. There is no doubt that these ETFs have marked a turning point for Bitcoin and other cryptocurrencies since the beginning of the year, opening the cryptocurrency to inflows from all sides.
Related reading
Interestingly, the data showed that retail investors are responsible for most of the demand for spot Bitcoin ETFs, accounting for 80% of total assets under management.
Bitcoin ETFs are changing the narrative
according to Bloomberg dataBitcoin ETFs dominated the ETF landscape in 2024, claiming the top four spots in terms of inflows among all ETFs launched this year. Specifically, of the 575 ETFs launched so far, 14 of the top 30 new funds are focused on Bitcoin or Ethereum. The standout performer was the BlackRock IBIT fund, which has attracted more than $23 billion in inflows year-to-date.
Last week was another example of positive performance in spot Bitcoin ETFs, despite the coin settling below the $68,000 price level. according to Data flow from SosoValue, the weekly inflows started on a positive note on Monday, October 21, with funds inflows of $294.29 million and ended the week with inflows of $402.08 million on Friday, October 25.
Interestingly, spot Bitcoin ETFs now hold around 938,700 BTC in the 10 months since their launch and are steadily approaching the 1 million BTC mark. Although these ETFs have opened doors for institutional investors, Recent report From cryptocurrency exchange Binance, he notes that retail investors are the main drivers of this increase in demand, accounting for 80% of holdings in spot bitcoin ETFs.
Originally intended to provide institutional investors access to BTC, Spot Bitcoin ETFs have now become the preferred choice of many retail investors looking to take advantage of the regulatory clarity they offer. However, there has been consistent demand from the institutional side, with institutional holdings up 30% since the first quarter.
Among institutional investors, investment advisors emerged as the fastest growing party, with their holdings increasing 44.2% to 71,800 BTC in the quarter.
What’s next for spot Bitcoin ETFs?
Thanks to the rapid growth of Bitcoin exchange-traded funds, an impressive 1,179 institutions, including financial giants like Morgan Stanley and Goldman Sachs, have joined the cryptocurrency cap table in less than a year. For comparison, gold ETFs It only managed to attract 95 institutions in its first year of trading.
Related reading
This is the upward trajectory of institutional investments in Bitcoin Ready to continue In the foreseeable future, which bodes well for the general outlook for Bitcoin’s price. As these ETFs attract more institutional capital, they are likely to produce second-order effects such as increased Bitcoin dominance, improved market efficiency, and reduced volatility that can significantly benefit the cryptocurrency ecosystem.
At the time of writing, Bitcoin is trading at $67,100.
Featured image from Reuters, chart from TradingView
Comments are closed, but trackbacks and pingbacks are open.