Bitcoin ETFs Changing The Narrative

Bitcoin exchange-traded funds (ETFs) had another stellar week, adding $997.70 million in net inflows and reaching its highest level of demand in the past six months. These ETFs have undoubtedly shifted the narrative for Bitcoin and other cryptocurrencies since the beginning of the year, opening up the cryptocurrency to inflows from all sides.

According to data from SosoValue, weekly inflows started on a positive note on Monday, October 21, with $294.29 million entering the funds and ended the week with $402.08 million in inflows on Friday, October 25.

More interestingly, Spot Bitcoin ETFs now hold around 938,700 BTC 10 months after launch and are steadily approaching the 1 million BTC milestone. Although these ETFs have opened the door to institutional investors, a recent report by cryptocurrency exchange Binance shows that retail investors are the main driver of this increased demand, accounting for 80% of Spot BTC ETF holdings.

Originally intended to provide institutional investors with access to BTC, Spot Bitcoin ETFs have now become the preferred choice of many individual investors looking to take advantage of the regulatory transparency they offer. However, there has been steady institutional demand, with institutional holdings up 30% since the first quarter.

Among institutional investors, investment advisors emerged as the fastest-growing group, with their holdings increasing 44.2% to 71,800 BTC this quarter.

Thanks to the rapid growth of Bitcoin exchange-traded funds, an impressive 1,179 institutions, including financial giants such as Morgan Stanley and Goldman Sachs, have joined the cryptocurrency cap table in less than a year. For comparison, gold ETFs only managed to attract 95 institutions in their first year of trading.

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