The spot ETFs of Bitcoin ($BTC) are going through a turbulent phase as their demand is decreasing. As per Julio Monero, CryptoQuant’s Head of Research, the demand for Bitcoin spot exchange-traded funds has plunged below the levels that were seen in these days during 2024. The crypto analyst discussed the present demand levels in the Bitcoin spot ETF market in comparison with their position last year.
Bitcoin’s Spot ETFs Witness Downturn in Demand in Comparison with 2024
The analyst’s report explains that the present $BTC spot ETFs are seeing considerably lower demand levels. In this respect, he pointed toward the status of the demand in this market during 2024. Hence, at the moment, the total inflows into the spot ETFs of Bitcoin account for almost 41,000 $BTC. However, back in 2024, at the same point, the respective inflows were standing at 100,000 $BTC. This highlights a diminishing institutional interest in $BTC spot ETFs.
Based on the market data, by the end of the year 2024, these spot ETFs surpassed the level of 450,000 $BTC in accumulation. Nevertheless, during the starting phase of this year, this market has witnessed a substantially weaker momentum. Thus, the net buyouts are seemingly subdued in comparison with 2024’s end. As a result, this massive demand decline raises apprehensions about the likely decrease in the overall institutional adoption. Ultimately, it could trigger a broader shift in investor behavior.
Despite Demand Downturn, $BTC Spot ETFs Still Absorb Bitcoin in Notable Amounts
However, according to the CryptoQuant’s leading researcher, it would be premature to conclude that Bitcoin’s institutional demand is fading. Since the spot ETFs emerged during 2024, causing an inflow boom, the inflows can be lower during 2025. Even then, spot ETFs are still attracting noteworthy amount of $BTC as a key force driving demand in the market.
