The CEO of VanEck, Jan van Eck, argues that for these first months of 2024, 90% of capital inflows into Bitcoin spot ETFs still come from retail investors. This means that institutional investors have not yet entered the market. 

VanEck: Bitcoin ETFs have mainly attracted retail investors

VanEck, investment management company, argues that in these first months since the launch of Bitcoin spot ETFs, it is still retail investors driving the success and the largest influx of capital. 

The situation is described by the CEO of VanEck, Jan van Eck, who indeed states that traditional banks and institutional investors still need to enter the world of BTC Exchange-Traded Funds. 

Here’s how Eck commented:

“I was surprised, but I don’t think it’s traditional investors yet. I still think 90% of the flows are retail. There have been some Bitcoin whales and other institutions transferring some assets, but they were already exposed to Bitcoin”

After the famous January 10, 2024, the day on which the official approval and launch of the 11 Bitcoin spot ETF applications in the USA took place, in just a few days, capital inflows of billions of dollars have been recorded.

Yet Eck claims that up to now, 90% of these capital inflows are still in the hands of retail investors. 

Not only that, Eck added that to date no US bank has officially approved or allowed their financial advisors to recommend Bitcoin.

VanEck: the success of Bitcoin spot ETFs is still driven by retail investors

The fact that retail investors are still leading the success of Bitcoin spot ETFs at the moment could represent the beginning of expansion and evolution for the sector. 

And indeed, the CEO of VanEck has already stated that starting from next month there could be news. The Bitcoin ETF sector could finally begin to welcome some important institutional investments from banks and traditional companies. 

Anyway, to the question of why investors should choose Bitcoin ETFs instead of buying BTC directly, Eck responded as follows:

“Convenience, security, and affordability. On many centralized exchange platforms, like Coinbase, the spreads are 2%. We have single-digit spreads for ETFs and no commission or low fees. It’s easier to make a purchase than anything else”

So the choice to invest in Exchange-Traded Funds on BTC mainly lies in convenience. 

In this regard, just last month, VanEck announced the removal of all trading fees for its Bitcoin spot ETFs until March 31, 2025.

A move aimed at attracting new investors, removing barriers to entry and offering the opportunity to invest in the world’s leading crypto without fees.  

The forecast on Ethereum’s layer-2: $1 trillion by 2030

Recently, VanEck has published its vision regarding the medium-term future of Ethereum’s layer-2 solutions, a highly debated topic within the DeFi-focused crypto community.

The investment management company predicts a bright future, with a valuation of Ethereum’s layer-2 that could reach $1 trillion by 2030. 

At the same time, VanEck does not exclude that a parallel failure of many solutions could occur during this time, which will not be able to emerge in the midst of fierce competition. 

Stefania Stimolo
Stefania Stimolo
Graduated in Marketing and Communication, Stefania is an explorer of innovative opportunities. She started out as a Sales Assistant for e-commerce, and in 2016 she began to develop a passion for the digital world, initially in the Network Marketing sector, where she discovered and became passionate about the ideals behind Bitcoin and Blockchain technology, which lead her to work as a copywriter and translator for ICO projects and blogs, and organize introductory courses.