Bitcoin exchange-traded funds (ETFs) have been successful in attracting capital in 2024, but traditional banks and institutional investors have yet to join in. In an exclusive interview with Cointelegraph at Paris Blockchain Week, Jan van Eck, the CEO of VanEck, stated that the retail sector has been the primary source of inflows into spot Bitcoin ETFs in the United States. Van Eck admitted that he was surprised by the initial success of the ETFs, which have seen billions of dollars of inflows on some days since their launch. However, he believes that these inflows have not come from significant investments by traditional finance players. According to Van Eck, around 90% of the flows are from retail investors, with some Bitcoin whales and other institutions also moving their assets in, although they were already exposed to Bitcoin.
Jan van Eck revealed that no U.S. banks have officially approved or allowed their financial advisers to recommend Bitcoin so far. While he expects some major institutional investments from banks and traditional firms to arrive in the next month, he believes that the Bitcoin ETF landscape is still in its early stages. When asked why investors would prefer to invest in a Bitcoin ETF rather than directly buying and managing BTC themselves, Van Eck cited convenience, safety, and affordability as major factors. He explained that the ETFs offer single-digit spreads and no or low fees, making it easier for investors to make a purchase.
VanEck, founded in 1955 by John van Eck, has a long history in the investment management industry. Jan van Eck mentioned that his father’s fund became successful in the 1970s due to the inflation of that time. He described himself as a “paranoid business person” who keeps an eye out for emerging assets that could rival gold. This led him to explore Bitcoin as a potential store of value in investment portfolios. Van Eck believes that Bitcoin may be a better store of value than gold in contemporary times. He also expressed concern about the U.S.’s budget deficit problems and how market movements reflect anticipation of this reality. Although Bitcoin ETFs and the price appreciation of Bitcoin have received much attention in 2024, Van Eck believes that their impact may be overestimated. He pointed out that the sharp rise in Bitcoin’s price in early April occurred outside of U.S. trading hours, indicating the influence of Asian markets.
VanEck CEO: Majority of Bitcoin ETF inflows still from retail investors, accounting for 90%