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    80% of Bitcoin ETF demand comes from retail investors: Binance

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    A Binance study shows that 80% of spot Bitcoin ETF assets are owned by retail investors. Spot Bitcoin ETFs launched in 2024 have attracted $21.6 billion, partly from retail investors moving funds for better protections. More institutional investors are cautiously entering Bitcoin ETFs, despite leading ETF issuer Vanguard refusing to launch any such product. An influx of $2.88 billion into Bitcoin ETFs from Oct. 11-23 could potentially cause a dip in Bitcoin prices.

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    According to a recent study by Binance, a crypto exchange, most people who are buying Bitcoin exchange-traded funds are retail investors.

    In a report they put out on Oct. 25, it showed that about 80% of all “spot Bitcoin ETF” assets as of Oct. 10 were owned by non-institutional investors (or regular folks, not big companies or organizations).

    Back in January 2024, spot Bitcoin ETFs were launched, and since then, they’ve pulled in $21.6 billion. But not all of this is new money; a good chunk of these funds is coming from retail investors moving their holdings out of digital wallets and exchanges to these ETFs to take advantage of better protections.

    Speaking of protections, Binance wrote that these ETFs are pulling double duty by attracting new investors and existing ones who like the regulated structure of ETFs. The latter group would rather not deal with the hassles of managing their Bitcoin holdings online or expensive options like Grayscale’s Bitcoin Trust.

    But it’s not just regular investors who are getting involved. More and more institutional investors (wealth advisors, hedge funds) are starting to get into the game too. However, progress on this front has been slow, and even those that have started investing have done so in a cautious manner.

    Contrast this with Vanguard, the second-largest ETF issuer in the world, who have refused to launch any Bitcoin or crypto ETFs. Their new CEO, Salim Ramji, has even said that they won’t be launching any crypto ETFs.

    Oddly enough, Bitcoin ETFs have seen a lot of inflow recently. Between Oct. 11 and 23, they pulled in a total of $2.88 billion. While this sounds good, one analyst warns that it could lead to a dip in Bitcoin prices in the near future.

    Source: Cointelegraph

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