Summary
TLDR: Bitcoin spot ETFs are experiencing record-breaking volumes and flows, indicating high demand. Analysts differ on who is driving this demand, with some believing it is mainly institutional investors while others see a mix of retail, independent advisors, and hedge funds. Major wirehouses like Merrill Lynch are still blocking access to Bitcoin ETFs, but pressure is mounting for them to onboard. The average trade size for Bitcoin ETFs is $13,098, compared to $132,885 for SPY and $106,306 for QQQ. Some compare Bitcoin’s recent surge to the GameStop frenzy, but others believe it is predominantly ETF retail investors, not retail traders.
Key Points
1. Record-shattering volumes and flows for Bitcoin spot ETFs indicate a significant demand for these recently approved investment vehicles, with institutional investors playing a key role in driving this demand.
2. Despite the institutional interest, there is also a mix of investor types participating in Bitcoin ETFs, including retail investors, hedge funds, and independent financial advisors.
3. Major wirehouses like Morgan Stanley and Merrill Lynch are expected to onboard Bitcoin ETFs soon due to increasing pressure and growing demand, with daily volume for Bitcoin ETFs surpassing $7.7 billion and net flows reaching over $673 million.