Impact of Bitcoin Spot ETF inflows on Institutional Adoption and Long-term Investment Strategy

In 2024, Bitcoin spot ETF inflows surged, driving institutional investors’ adoption as Bitcoin’s correlation with major U.S. stock indexes reached 0.87. Institutional investors now regard Bitcoin as their core asset, allocating 1-5% of Bitcoin in their portfolio for diversified investment, liquidity management and inflation hedging. Bitcoin’s volatility has stabilized, with Bitcoin ETFs showing net inflows while traditional assets showing net outflows, which consolidates its position as a strategic systemic investment.