Spot Bitcoin ETFs Record Unprecedented Growth, Attracting $18.9B Inflows

Less than a year after their launch, spot Bitcoin ETFs have recorded unprecedented growth, boosting investors’ interest and demand for the largest cryptocurrency.

Spot Bitcoin ETFs have seen less than a year pass since their launch, yet they have already recorded unprecedented growth that has served to boost investors’ interest and demand for the largest cryptocurrency.

A significant portion of the total assets under management (AUM) by these funds were amassed within the first few months of their launch. However, the report noted that inflows into the funds remained steady throughout the year, indicating sustained investor interest.

Bitcoin ETFs Record $18.9B Inflows

Spot Bitcoin ETFs have fueled demand for the crypto asset over the past few months. As a result, the funds have consistently removed an average of 1,100 BTC per day from the market.

Furthermore, the funds recorded positive flows in 24 out of 40 weeks, with the value of inflows surpassing outflows by a wide margin. Over the past 10 months, Bitcoin ETFs have received cumulative flows exceeding $21 billion.

The report also highlighted that Bitcoin ETF flows have surpassed the early performance of the first Gold ETF, which currently has an AUM of $130.9 billion. The Gold ETF was considered a huge success when it recorded $1.5 billion in inflows within the first year of its launch in 2005. However, Bitcoin ETF flows have smashed that record, hitting over $21 billion in just 10 months.

Retail Investors Drive Demand for Bitcoin ETFs

The report found that retail investors are driving the demand for Bitcoin ETFs, accounting for 80% of the total interest. In contrast, institutional demand is lower but has shown strong growth in recent months, increasing by 7.9% since Q1.

The number of institutional investors has also increased, with over 1,200 now holding these ETFs. Among the top institutional holders are investment advisors, hedge funds, and large banks, such as Goldman Sachs and Morgan Stanley, as well as pension funds like the State of Wisconsin Investment Board.

Due to investors becoming more comfortable with digital assets, institutional interest in Bitcoin ETFs is expected to continue increasing in the coming years. This is especially true as bitcoin’s correlation with the S&P 500 has continued to rise since early 2024, highlighting a change in investor sentiment toward BTC as a safe-haven asset.

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