The CEO of VanEck has stated that the majority of inflows into Bitcoin exchange-traded funds (ETFs) are from retail investors, with 90% of the total.

Bitcoin exchange-traded funds (ETFs) have seen significant capital inflows in 2024, with the retail sector primarily driving investments, as traditional banks and institutional investors remain on the sidelines.

At Paris Blockchain Week, VanEck CEO Jan van Eck, in an exclusive interview with Cointelegraph, highlighted the retail sector's dominance in the influx of funds into spot Bitcoin ETFs in the United States.

Van Eck expressed surprise at the initial success of the ETFs, noting that they have seen substantial daily inflows, often amounting to billions of dollars. However, he observed that these inflows have predominantly come from retail investors, with minimal participation from traditional finance (TradFi) players.

“I was surprised, but I don’t think it’s traditional investors yet. I still think 90% of the flows are retail. You’ve had some Bitcoin whales and some other institutions move some assets in, but they were already exposed to Bitcoin,” van Eck said.

Van Eck also noted that no U.S. banks have officially endorsed or permitted their financial advisors to recommend Bitcoin investments thus far.

While predicting potential institutional investments in the near future, Van Eck emphasized that the Bitcoin ETF landscape is still nascent: “There’s a lot of maturation to happen. A lot of technology will be developed on-chain, so there’s a long way to go.”

When asked about the preference for Bitcoin ETFs over direct Bitcoin ownership, Van Eck cited convenience, safety, and affordability as key factors. He highlighted narrower spreads and lower fees compared to centralized exchanges like Coinbase.

VanEck’s Legacy and Bitcoin’s Role in Investment

Founded in 1955 by John van Eck, VanEck gained prominence with the introduction of the first gold fund in the United States in 1968. Jan van Eck acknowledged his father's foresight in launching the gold fund during a period of soaring inflation in the 1970s.

Reflecting on his firm’s approach, Jan van Eck described himself as a “paranoid business person” keen on identifying emerging assets. He noted Bitcoin’s potential to complement gold in investment portfolios, driven by political, economic, and technological trends.

Despite Bitcoin’s rise, Van Eck maintained a pragmatic view, emphasizing the need for a diversified investment approach. He suggested Bitcoin could serve as a store of value, particularly in light of looming economic challenges in the U.S.

Challenges to Overcome

While Bitcoin ETFs have garnered attention, Van Eck cautioned against overstating their impact on the broader market. He pointed to the global nature of the Bitcoin market, highlighting instances of price movements outside U.S. trading hours, influenced by Asian markets.