A recent report by Binance reveals that retail investors have been the main drivers of demand for spot Bitcoin exchange-traded funds (ETFs). As of October 10, non-institutional investors represented nearly 80% of total assets under management (AUM) in these ETFs. Spot Bitcoin ETFs, launched in January 2024, have garnered $21.6 billion in net inflows over ten months, suggesting much of the investment has come from retail investors reallocating their holdings from digital wallets and centralized exchanges into these regulated funds. While retail investors dominate, there is a noted increase in institutional interest from investment advisers and hedge funds. However, many traditional financial institutions remain cautious, with firms like Vanguard refraining from entering the Bitcoin ETF space. Despite this, the market has seen significant inflows into Bitcoin ETFs recently, prompting concerns about a potential price dip for Bitcoin.

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