VanEck: Institutions are not yet on board! 90% of Bitcoin spot ETF funds come from retail investors

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 and continue to do so. Bringing incremental funds also promoted the rise of BTC.

VanEck CEO: 90% of the funds come from retail investors

Originally, the market thought that the Bitcoin spot ETF would attract a large number of institutional funds to enter the market and increase their holdings of Bitcoin. However, the Bitcoin spot ETF Janvan Eck, CEO of issuer VanEck, said in a recent interview that the current flow of funds into Bitcoin ETFs does not mainly come from traditional financial institutions, but from retail investors: the initial success of these ETFs since their launch has exceeded expectations. There have even been billions of dollars in inflows on some trading days, but I think traditional funds have not yet entered the market on a large scale. I still think 90% of the funds come from retail investors. Although some Bitcoin whales and other institutions have invested some assets, they have already been exposed to Bitcoin before.

What is worth thinking about here is whether, compared to institutional investors, retail investors, due to their small capital size, speculative nature and other factors, will amplify FUD sentiment during the decline in Bitcoin prices, thus Triggered a series of accelerated declines and liquidations of BTC?

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 do not want to cause market fluctuations because of their large funds, so they choose to conduct OTC privately. It deserves our continued attention and verification in the future.

Traditional funds may enter the market in May

Janvan Eck added that so far no U.S. bank has officially approved or allowed its financial advisors to recommend Bitcoin. But next month, we may see some investment from banks and traditional financial companies. Bitcoin ETF is still in its infancy: there is still a lot to be perfected, a lot of technology is being developed on the chain, and we have a long way to go. Way to go.

BlackRock IBIT is expected to become the largest Bitcoin ETF

In addition, according to statistics from The Block, among all the Bitcoin spot ETFs currently on the market, the 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 outflows of funds. Therefore, the market judges that IBIT may surpass Grayscale GBTC and become the largest Bitcoin ETF on the market.

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