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Retail Investors Flock to Bitcoin ETFs as Inflation Fears Drive BTC Past $70k

Published 2024-04-11, 08:59 a/m

Retail investors drive 90% of Bitcoin ETF inflows, says VanEck CEO. BTC surges past $70,000 amid persistent inflation.

According to Jan van Eck, CEO of VanEck, retail investors are driving the majority of inflows into spot Bitcoin exchange-traded funds (ETFs). In a recent statement to Cointelegraph, he revealed that approximately 90% of the total capital invested in these ETFs since their launch four months ago has come from retail traders.

Despite the significant influx of funds, traditional banks and institutional investors have yet to make substantial investments in the market. However, van Eck said he anticipates potential future interest from these financial institutions as the Bitcoin ETF (TSX:EBIT) market develops.

Spot Bitcoin ETFs Inflows in the US Dominated by Retail Investors

Spot Bitcoin ETFs, recently approved by the US Securities and Exchange Commission (SEC), provide investors with exposure to Bitcoin without needing to own the cryptocurrency directly.

This development marks a significant step towards integrating digital assets into mainstream finance. By investing in these ETFs, individuals can avoid the risks of creating crypto wallets and dealing with potentially vulnerable cryptocurrency exchanges.

Moreover, spot Bitcoin ETFs offer a reassuringly convenient and accessible way for traditional investors to gain exposure to Bitcoin, with professional fund managers overseeing the investments. The emergence of these ETFs contributes to the institutionalization of Bitcoin as a legitimate asset class, potentially attracting substantial new capital inflows.

Bitcoin Breaks $70,000 as US Inflation Continues to Persist

As the US grapples with persistent inflation, Bitcoin’s price has surged, reaching $70,749.45 and crossing the $70,000 threshold.

The US Consumer Price Index (CPI) rose by 0.4% month-over-month in March, with a year-over-year increase of 3.5%, surpassing expectations. In response to these economic conditions, financial analysts and market behavior suggest that Bitcoin is increasingly being viewed as a secure hedge against inflation, maintaining its value even as traditional markets fluctuate due to rising consumer prices.

This perception, coupled with the growing accessibility of spot Bitcoin ETFs, may continue to drive retail investment in the cryptocurrency market.


Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.

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