According to CoinDesk, data indicates that the majority of demand for spot bitcoin ETFs has come from retail investors. The average trade size of BlackRock's iShares Bitcoin Fund (IBIT) is 326 shares, or approximately $13,000, suggesting that nonprofessional investors are behind these trades. Since their launch in January, billions of dollars have flowed into spot bitcoin exchange-traded funds, with sentiment around the cryptocurrency improving.
Bloomberg Intelligence senior ETF analyst Eric Balchunas stated that retail investors are a significant factor in the demand for spot bitcoin ETFs. His data shows that BlackRock's iShares Bitcoin Trust (IBIT) sees an average of 250,000 trades per day. BlackRock declined to comment, but a person familiar with the matter confirmed that most of the money flow appears to be driven by retail investors. ETF issuers have also confirmed to Balchunas that demand is primarily driven by the retail crowd.
VanEck's director of digital assets products, Kyle DaCruz, agreed that retail investors are a significant factor in the demand for their VanEck Bitcoin Trust (HODL), which launched in January alongside nine other spot bitcoin ETFs. ETFs make it easier for individual investors to allocate money into bitcoin without holding the actual asset themselves, allowing non-crypto investors to easily invest in the cryptocurrency through financial advisers or brokerage accounts. BlackRock's IBIT has attracted over $14 billion in assets in just two months, making it the most successful among the bitcoin ETFs.
