Despite a narrative suggesting diminishing retail interest in Bitcoin, recent trends in spot Bitcoin ETFs reveal that retail investors still play a vital role. Although onchain metrics show small wallet activity at a multi-year low, retail demand is flowing through traditional financial channels such as spot ETFs. These ETFs have allowed retail investors to gain Bitcoin exposure without direct self-custody, which appeals to those lacking technical confidence. As of now, approximately 75% of the investors in US spot Bitcoin ETFs are retail clients, with a significant portion held via investment advisers and hedge funds. The growth in ETF assets, amounting to about $135 billion, indicates ongoing interest from retail investors, especially in regions outside the US where self-custody remains essential. Nevertheless, Bitcoin's price struggles persist as current inflows are insufficient to outweigh outflows, necessitating a significant market catalyst to boost demand again. Overall, while direct demand may seem subdued, it is not eliminated and could resurface under conducive market conditions.

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