Retail investors account for 90% of the inflows into Bitcoin ETFs, affirms VanEck CEO.

Bitcoin exchange-traded funds (ETFs) have been successful in attracting capital in 2024, but traditional banks and institutional investors have yet to join in. Speaking at Paris Blockchain Week, VanEck CEO Jan van Eck stated that retail investors have been the primary source of inflows into spot Bitcoin ETFs in the United States. Van Eck expressed his surprise at the initial success of the ETFs, which have seen billions of dollars of inflows on some days since their launch. However, he believes that these inflows have not come from significant investments from traditional finance players. Van Eck stated that the majority of the flows are still from retail investors, with some Bitcoin whales and institutions already exposed to Bitcoin moving their assets. He also mentioned that no U.S. banks have approved or allowed their financial advisers to recommend Bitcoin. Van Eck expects major institutional investments from banks and traditional firms in the next month, but he believes that the Bitcoin ETF landscape is still in its early stages. When asked why investors would prefer Bitcoin ETFs over directly buying and managing BTC, Van Eck highlighted convenience, safety, and affordability as major factors. He explained that ETFs offer single-digit spreads and no or low fees, making it easier for investors to make purchases. VanEck, founded by Jan van Eck’s father in 1955, has a “big picture” approach to investing, driven by political, economic, and technological trends. Van Eck became interested in Bitcoin as an emerging asset that could serve as a store of value in investment portfolios. He believes that Bitcoin may be a better store of value than gold in contemporary times, especially considering the U.S.’s budget deficit problems. Van Eck also mentioned that the impact of Bitcoin ETFs and the price appreciation of Bitcoin in 2024 might be overstated, as the influence of Asian markets is significant.