The craze for spot Bitcoin ETFs has not been denied since their launch in January 2024, with a major surprise: it is individuals, and not institutions, who are leading the dance. According to a recent report from Binance, individual investors represent 80% of the assets under management of these financial products.
Individuals at the forefront of Bitcoin ETF adoption
Since January 2024, spot Bitcoin ETFs have quickly found their audience on American soil.
According to thestudy published by Binance on October 25, these financial products attracted no less than $21.6 billion in net inflows in just 10 months, reaching $63.3 billion in assets under management. The most surprising? Nearly 80% of these investments come from individual investors.
This trend can be explained in particular by a transfer phenomenon: many Bitcoin holders are abandoning their digital wallets and centralized exchange platforms in favor of these ETFs, considered more secure and better regulated.
The simplicity of access and the reassuring regulatory framework of ETFs seem to have convinced individual investors, who can now gain exposure to Bitcoin via their traditional securities account, without the technical complexities inherent in directly holding cryptos.
Institutions in cautious observation phase
f individuals currently dominate the market, institutional interest continues to grow. Investment advisors and hedge funds are showing a growing appetite for these products, although their investments remain calculated and incremental.
However, some giants of traditional finance maintain a reserved position. This is notably the case of Vanguard, the second largest issuer of ETFs in the world, whose CEO Salim Ramji clearly reaffirmed his anti-crypto position in August, excluding any launch of ETFs linked to cryptos.
According to Binance analysts, this caution reflects the characteristic approach of the traditional financial sector, particularly in a context marked by market volatility and uncertainties over global liquidity.
The current dynamic of Bitcoin ETFs thus reveals a fascinating paradox: initially designed to attract institutional investors, these financial products have become the vehicle of choice for individuals to access the Bitcoin market.
The enthusiasm shows no sign of slowing down and could, in the long term, convince the most reluctant players. This is evidenced by the meteoric progression of spot Bitcoin ETFs which, less than a year after their launch, are already approaching the symbolic milestone of one million BTC under management.
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