According to a report by Binance Research, retail investors are leading the adoption of spot Bitcoin exchange-traded funds (ETFs), accounting for 80% of total demand.
According to the report, Bitcoin ETFs have seen accelerating adoption since their debut, with cumulative holdings now reaching over 938,700 BTC and approximately $63.3 billion in assets under management (AUM), according to a recent report from Binance. According to the book, it is equivalent to 5.2% of the total Bitcoin supply. the study.
The report finds that net inflows into these ETFs have consistently exceeded initial expectations and that strong investor demand is leading to market reshaping of both price conditions and institutional investor interest. It emphasizes what it shows.
stable demand
The report noted that the Spot Bitcoin ETF is driving stable demand by absorbing approximately 1,100 BTC per day from circulation. In contrast to the gold ETF, the Bitcoin ETF attracted over $20 billion in net inflows in its first 10 months of trading, dwarfing the $1.5 billion gold ETF accumulated in its debut year.
Additionally, institutional buy-in has skyrocketed, with more than 1,200 participating institutions compared to just 95 in the gold ETF's first year. Despite this institutional growth, retail investors still dominate the market, accounting for approximately 80% of ETF holdings, reflecting Bitcoin's popularity among non-institutional investors. is supported.
The report notes that while many of these retail investors are not completely new to cryptocurrencies, they are seeking the additional regulatory protection and ease that these funds offer by transferring their holdings from digital wallets and exchanges to ETFs. He pointed out that it was being moved to This shift highlights the unique role Spot Bitcoin ETFs play in providing a simple and accessible entry point for retail investors while maintaining strong demand.
Despite this dominance of retail buyers, institutional interest has also increased significantly, with over 1,200 institutions investing in Spot BTC ETFs in less than a year. This pace of adoption far outpaces that of the initial gold ETF, which was adopted by just 95 institutional investors in its first year.
However, retail buyers continue to set the pace of demand, with holdings up 30% from the first quarter, driven primarily by self-directed investors using online brokerage accounts.
Market stability and liquidity
These ETFs are characterized by a broad impact on market stability and liquidity. Since the launch of the Spot ETF, Bitcoin spot trading volume has increased significantly, with daily trading volume increasing by 66.9% year-on-year on average.
As institutional investors and market makers inject additional capital, market depth, a measure of Bitcoin's liquidity, has improved, leading to tighter spreads and lower price volatility.
This evolution in liquidity profile has attracted more traditional investors and led some companies to use Bitcoin as collateral for structured loans, a practice previously limited to more traditional assets. There is even.
The report also detailed the shift in sentiment as Bitcoin's correlation with traditional financial indicators such as the S&P 500 reached historic highs. This trend likely reflects Bitcoin's dual role as both a growth asset and a hedge against macroeconomic fluctuations.
According to Binance Research, the ETF flow reflects changes in broader market sentiment and strengthens the integration of mainstream cryptocurrencies into traditional finance.
