Currently, 90% of the funds flowing into Bitcoin spot ETFs come from retail investors, not traditional financial institutions.
It has been exactly three months since the U.S. Securities and Exchange Commission (SEC) approved the listing of multiple Bitcoin spot ETFs. Currently, market investors are very enthusiastic about purchasing this product, which continues to bring in incremental funds and also drives BTC up. The market originally thought that Bitcoin spot ETFs would attract a number of institutional funds to enter the market to increase their holdings of Bitcoin, but Jan van Eck, CEO of Bitcoin spot ETF issuer VanEck, said in a recent interview that
The funds currently flowing into Bitcoin ETFs are not mainly from traditional financial institutions, but from retail investors: the initial success of these ETFs since their launch has exceeded expectations, and some trading days have even seen inflows of billions of dollars, but I believe that traditional funds have not yet entered the market on a large scale, and I still believe that 90% of the funds come from retail investors. Although some Bitcoin whales and some other institutions have invested some assets, they have already been exposed to Bitcoin before.
It is worth thinking about here that, compared with institutional investors, retail investors, due to their small capital size and speculative nature, will amplify FUD sentiment during the decline of Bitcoin prices, thereby triggering a series of BTC accelerated declines and liquidation events?
But on the other hand, does this mean that when institutions enter the market (real big funds), it will further promote the rise of BTC prices? However, there is also a possibility that these institutions, because of their huge funds, do not want to cause market fluctuations, and choose to conduct OTC privately. In the future, it is worth our continued attention and time verification. May may usher in traditional funds to enter the market. Jan van Eck added that so far no US bank has officially approved or allowed its financial advisors to recommend Bitcoin.
However, next month, we may see some investments from banks and traditional financial companies. Bitcoin ETFs are still in their infancy: there are still many things to be improved, and many technologies are developed on the chain. We still have a long way to go.
BlackRock's IBIT is expected to become the largest Bitcoin ETF. In addition, according to statistics from The Block, among all the Bitcoin spot ETFs on the market, asset management giant BlackRock's IBIT holdings have soared from US$4.4 billion two months ago to US$18.2 billion, approaching Grayscale's US$23.2 billion.At the same time, due to the high management fees of Grayscale's Bitcoin ETF, there may be further outflow of funds, so the market believes that IBIT may surpass Grayscale GBTC and become the largest Bitcoin ETF in the market.
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