According to a Binance Research report (title: “Spot ETFs in Crypto Markets”) published earlier today, spot Bitcoin ETFs have collectively accumulated around 938.7K BTC, valued at roughly $63.3 billion. This figure, when including similar funds, accounts for 5.2% of Bitcoin’s total supply. The report points out that net flows for BTC ETFs have exceeded 312.5K BTC, equivalent to about $18.9 billion, with inflows recorded in 24 of the past 40 weeks. This consistent demand has been pulling approximately 1.1K BTC out of the market each day.
Binance draws a comparison between the rapid rise of spot Bitcoin ETFs and the early days of gold ETFs, noting that BTC ETFs have seen net inflows of $18.9 billion within less than a year—significantly outpacing the $1.5 billion in flows Gold ETFs managed early on. Over 1,200 institutions are now apparently investing in BTC ETFs, a considerable increase from the 95 institutions that supported gold ETFs in their initial phase.
However, the report identifies a different trend with spot Ethereum ETFs, which have experienced 43.7K ETH in outflows—roughly $103.1 million—over the past 11 weeks, with outflows in 8 of those weeks. Binance’s data indicates that Bitcoin ETFs exert a greater influence on their markets, even when considering trading volumes.
The demand for BTC ETFs has been primarily driven by individual investors, who account for 80% of market activity, according to Binance’s analysis. At the same time, institutional interest has grown by 30% since Q1. Binance notes that investment advisors have played a crucial role, with their holdings increasing by 44.2% to reach 71.8K BTC. They anticipate that expanding access to BTC ETFs across banks, broker-dealers, and advisors will be a gradual process, potentially supporting wider adoption in the years to come.
Binance sees spot Bitcoin ETFs emerging as a significant indicator within the market and among the fastest-growing ETF types. The report mentions that BlackRock’s IBIT and Fidelity’s FBTC are now among the top 10 funds in assets under management from over 2,000 ETF launches this decade. It also says that since early 2024, Bitcoin’s correlation with the S&P 500 has increased, which signals a shift in investor perception, treating Bitcoin as both a speculative asset and a safeguard against economic instability.
Data from Binance Research shows that spot Bitcoin ETFs now account for an average of 26.4% of BTC’s spot trading volume, with a peak of 62.6%. Binance believes this significant volume contributes to secondary market effects, such as increased Bitcoin market share, improved trading efficiency, and lower price fluctuations. Binance’s findings suggest that this influx of liquidity supports the broader acceptance of Bitcoin and draws more venture capital interest, with tokenized real-world assets (RWAs) anticipated to become a critical channel for institutional access to on-chain assets.
The report also notes the potential for crypto ETF product expansion across global markets, driven by ongoing demand. Options, the potential for staking yield inclusion, and new asset ETFs remain at the early development stage. However, the research points out that evolving regulatory frameworks will be essential in determining the outcome of these innovations, with macroeconomic factors playing a growing role in crypto markets, impacting flow dynamics and institutional involvement.
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