The Head of Digital Assets at BlackRock, Robert Mitchnik, reported a significant increase in net capital inflows into spot Bitcoin ETFs, indicating a surge in investment activity in this sector. This comes against the backdrop of the TOKEN2049 conference taking place in Dubai from April 30 to May 1, 2025.
This is reported by Business • Media
Changes in the Structure of Investment in Bitcoin ETFs
According to Mitchnik, in the early stages, the majority of investments in spot Bitcoin ETFs were made by retail investors, including large investment funds with assets exceeding $100 million. However, over time, there has been a shift towards attracting institutional investors, namely organizations and corporations.
“The share of retail capital in inflows into spot Bitcoin ETFs is decreasing every quarter. This has not been a single event, but a gradual process of adopting exchange-traded funds,” Mitchnik noted.
A Positive Outlook on Cryptocurrency as a Low-Beta Asset
Following the discussion, Bloomberg Intelligence analyst Eric Balchunas suggested that this indicates a “transfer of Bitcoin from weak hands to stronger ones.” Mitchnik agreed and added that Bitcoin is now viewed as a low-beta asset, meaning it has low volatility relative to the market. “This doesn’t make fundamental sense, but recurring trends create a certain narrative that can influence the market,” Mitchnik emphasized.
It is worth noting that beta is a measure of an asset’s volatility compared to the market. For example, if the S&P 500 index is considered equal to 1, then assets with a beta above 1 have higher volatility than the market, while those with a beta below 1 have lower volatility.
Furthermore, analysts at Standard Chartered Bank predict a continued decrease in Bitcoin’s correlation with U.S. stocks, highlighting its potential as a “safe haven” for investors.
Over the past week, from April 21 to April 25, 2025, the volume of investments in spot Bitcoin ETFs reached its lowest point since November 2024, indicating a revival in this market segment.