Analyst Reveals: Retail Investors Dominate Bitcoin ETF Shareholders, Comprising 85% of the Total

Jim Bianco, a macro investment researcher, has suggested that retail traders are dominating the spot Bitcoin exchange-traded funds (ETFs) market in the United States. Bianco analyzed first quarter 13F filings to the US Securities and Exchange Commission (SEC) and found that only 3 percent of the market cap of spot Bitcoin ETFs was held by investment advisors, while the majority was held by hedge funds. He expressed concerns that these ETFs were being treated like “Orange FOMO poker chips.” Bianco also noted that the average trade size for spot Bitcoin ETFs is significantly lower than that of traditional ETFs. He believes that retail traders are using the same investment strategy in these ETFs as they do in meme coins. Bianco pointed out that cash inflows into spot Bitcoin ETFs only occur when the price increases, indicating speculative behavior. He also highlighted the need for a new decentralized financial system to support the growing adoption of spot Bitcoin ETFs. In recent market news, BlackRock’s IBIT recorded a cash inflow of $290 million, contributing to a total cash inflow of $305 million for all US-based spot Bitcoin ETFs. The increasing adoption of spot Bitcoin ETFs has been driving the price of Bitcoin higher and indicating heightened demand.