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One year of bitcoin spot ETPs: A brief market and fund flow analysis

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  • Oefele, Nico

Abstract

Since January 2024, the market for Bitcoin spot exchange-traded products has expanded rapidly. The market became increasingly concentrated, with more than half of the assets under management allocated to a single product. The average weekly net fund flow of 1.4 % indicates strong investor demand. Daily changes in Bitcoin's price are the primary driver of daily net fund flows. On average, a 3.4 % change in Bitcoin's price corresponds to a 0.2 % net fund flow, all else equal. This suggests that investors in Bitcoin spot ETPs primarily base their investment decisions on Bitcoin's price movements.

Suggested Citation

  • Oefele, Nico, 2025. "One year of bitcoin spot ETPs: A brief market and fund flow analysis," Economics Letters, Elsevier, vol. 250(C).
    • Handle: RePEc:eee:ecolet:v:250:y:2025:i:c:s0165176525001417
    DOI: 10.1016/j.econlet.2025.112304
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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