In a discussion held on 30 April 2025 at the Token2049 Dubai, Robert Mitchnick, Head of Digital Assets at BlackRock, said that it will be interesting to see who was buying Bitcoin ETFs over the last 16 months. “At the outset, it certainly was predominantly retail. But then you also have the two other segments that are really important here, which are wealth advisory and institutional,” he added.
Mitchnick added that usually investors who are bullish on Bitcoin are also bullish on gold. “Bitcoin and gold share a lot of world views”, he said. He further stated that many have reallocated their portfolios, moving from all gold positions to a gold-Bitcoin strategy of 80/20 or 50/50 or even substituting their gold positions entirely with Bitcoins.
On the topic of investor behaviour and the changing dynamics around Bitcoin ETFs and futures, Jan van Eck, CEO of VanEck, and Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group weighed in.
Bitcoin ETF: Most Successful ETF Launch In History
Bloomberg analyst Eric Baluchnas kicked off the discussion by stating that Bitcoin EFTs have attracted over $40 billion in net flows since launch, making Bitcoin ETF the most successful ETF launch in history. “The flows are back in a big way,” agreed Mitchnick. He further stated that seeing who was buying Bitcoin ETFs over the last 16 months was interesting. “At the outset, it certainly was predominantly retail. But then you also have the two other segments that are really important here, which is wealth advisory and institutional,” he explained.
Furthermore, he stated that this is a pattern that is discernible in every single quarter where the percentage in retail goes down and the percentage of institutional wealth advisory goes up.
Baluchnas took the conversation forward with facts. “ETFs have $10 trillion. About 70% of that money is advisors. Advisors are the people who manage all the boomer assets. And the boomers have all the money,” he said. Furthermore, he elaborated, institutions (pension plans, etc.) have a $100 trillion market, and it is even harder to penetrate, but some inroads have been made. The advisors’ assets, however, are the main audience for ETFs in the future.
Meanwhile, Van Eck explains that while Bitcoin’s inflows are impressive, they still lag behind gold’s $14 billion inflows into ETFs this year. “Bitcoin is so far away from penetrating those dark rooms where the big money lies,” he says.
Furthermore, traditional brokerages like Vanguard still restrict Bitcoin ETF access, indicating how early the broader adoption phase still is. Expanding on this point, he states that there is a long way to go before most allocators include Bitcoin ETFs.
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Role Of Futures And Hedge Funds
Vicioso weighed in on the crucial role of Bitcoin futures in laying the groundwork for ETF approval. According to him the liquidity that the futures market creates helps establish price stability that allows ETF issuers to efficiently buy and hold Bitcoins.
He said that the ETFs and spot markets have been successful off the back of futures, as all these markets are related. “If the ETFs are doing well, it means that the futures are doing well, and it also means that Spot is doing well,” he says.
Additionally, Baluchnas stated that hedge funds engage in basis trading where they exploit the price differential between futures and spot Bitcoin prices. Vicioso explained that hedge funds buy Bitcoin ETFs while shorting Bitcoin futures. Therefore, locking in the spread.
The differential has moved around. Initially, the basis was around 20% after the ETF launch, it collapsed to 5% for a while and is now back to 8-10%.
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Bitcoin ETF Price To Become More Stable Since Holders Are More Stable
A key theme was Bitcoin’s behaviour during the recent “tariff tantrum,” where stocks sold off amid US trade policy uncertainty. Historically, Bitcoin has behaved like “high beta”—amplifying stock moves. However, during the recent downturn, Bitcoin’s price remained relatively stable compared to equities.
This stability, Balchunas theorised, is due to the “upgrade” in holders. Bitcoin has shifted from shaky hands (e.g., FTX, distressed sellers) to long-term holders like MicroStrategy’s Michael Saylor.
Michnick agreed, noting that Bitcoin’s fundamental property as a decentralised, scarce asset makes it a logical safe haven. Once Bitcoin displayed even a single day of uncorrelated, safe-haven behaviour, ETF inflows surged again, showing pent-up demand for diversification assets.
Van Eck added historical context, highlighting that Bitcoin’s correlation with traditional assets was near zero pre-2020. However, post-COVID stimulus, Bitcoin’s correlation to stocks rose to about 0.4—still low but significant for portfolio managers seeking true diversification.
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On Ethereum ETFs And Broader Altcoin Market
Ethereum ETFs launched with less excitement compared to Bitcoin’s. However, it still attracted meaningful inflows ($4B–$12B in a year). Often considered the “silver” to Bitcoin’s “gold,” Ethereum faced challenges but has shown resilience. Altcoins like Solana, XRP, and Litecoin are being closely watched for futures market expansion, contingent on regulatory clarity.
Yet, institutions and advisors overwhelmingly prioritise Bitcoin—and to a lesser extent, Ethereum. Broader crypto investing is seen more like tech venture capital, rather than a monetary play.
Balchunas concluded with a rhyme, “The further away you get from BTC, the less assets there will be.” Mitchnick agreed, “Overwhelmingly the focus of, at least institutional and wealth advisory today, is Bitcoin.”
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Key Takeaways
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Bitcoin EFTs have attracted over $40 billion in net flows since launch. -
Bitcoin’s fundamental property as a decentralised, scarce asset makes it a logical safe haven. -
institutions and advisors overwhelmingly prioritise Bitcoin—and to a lesser extent, Ethereum.
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