Spot Bitcoin (“BTC”) Exchange-traded funds (“ETFs”) have accumulated over 938.7K BTC (~US$63.3B), and when including other similar funds, this figure comprises 5.2% of Bitcoin’s total supply. With net flows exceeding 312.5K BTC (~US$18.9B), and positive flows in 24 of 40 weeks, these ETFs are driving sustained market demand, removing an average of ~1.1K BTC per day.
While BTC ETFs have thrived, Etheruem (“ETH”) ETFs have seen weaker demand, with 43.7K ETH (~US$103.1M) in outflows and negative flows in 8 of 11 weeks. BTC ETFs have a much greater impact on their respective markets, normalized by spot trading volume.
Non-institutional investors account for ~80% of BTC ETF demand, while the number of institutional investors has increased by ~30% since Q1. Investment advisors saw the most significant growth, with holdings increasing by 44.2% to 71.8K BTC. Though fully expanding BTC ETF access across broker-dealers, banks, and advisors may take several years, this gradual process is expected to drive broader adoption over the medium term.
Strong demand is driving the expansion of crypto ETF products across global markets, while options, potential staking yield inclusion, and new asset ETFs remain in early phases. Collectively, these developments aim to boost liquidity and adoption, but evolving regulatory frameworks will be key in shaping the success of these innovations.
