Retail Investors Remain Main Buyers of BTC Spot ETFs in Q2 2024

Macro strategist Jim Bianco has released surprising data that challenges common market expectations, revealing a significant presence of retail investors in cryptocurrency investment funds. Bianco shared his findings on the X platform, indicating that retail investors accounted for 85% of Bitcoin ETF shares in the first quarter of 2024. The data, which became public after the May 15 deadline for filing 13F forms with the U.S. Securities and Exchange Commission (SEC), shows lower participation from investment advisors and wealth managers, who are typically seen as influential figures in the crypto space. Bianco explained that anyone with more than 5% beneficial ownership or at least $100 million in assets must file a 13F within 45 days of the end of the quarter, and approximately 7,000 forms were filed. The filings revealed that only about 3% of the ETFs’ market capitalization was held by investment advisors, challenging the narrative of institutional investors driving Bitcoin adoption through these funds. Bianco expressed concern that spot BTC ETFs were merely “orange FOMO poker chips,” and the first quarter 13F filings further supported this notion. The data contradicts the popular belief that older investors, often referred to as “boomers,” are heavily investing in cryptocurrencies. Instead, non-institutional investors make up the majority of ETF holders, reflecting a growing interest and confidence in Bitcoin among the general public. This suggests that retail investors are leading the way in the cryptoasset market, rather than following institutional investor trends.