CoinDesk
Two and a half years after the first US spot bitcoin ETFs began trading, senior figures from CoinShares, Calamos, ProShares and Flow Traders agreed at CoinDesk's Consensus Miami conference that the access problem has been solved — and the next set of problems is now visible. The roughly dozen US spot bitcoin ETFs hold around $107 billion in combined assets, with about $20 billion in institutional hedge funds, $12.5 billion allocated by registered investment advisors, and 60% sitting in direct retail accounts, according to Christopher Russell, head of strategic planning and analysis at Calamos Investments.
Why it matters
The structural debate has moved on from launch demand. Jean-Marie Mognetti, CEO of CoinShares, flagged concentration risk: "Right now they are all using one custodian, which is Coinbase, creating a massive concentration risk in the market." He framed the diversification gap as a zero. The market is no longer uniformly single-custodian — Fidelity's FBTC uses Fidelity Digital Assets, BlackRock's IBIT added Anchorage Digital Bank alongside Coinbase, and VanEck's HODL launched with Gemini before layering in Coinbase — but Coinbase remains a central piece of ETF plumbing.
Russell pointed to what he called the 1% problem: advisors can take a 1% position in a 50-60 vol asset, "but they don't want to spend 50% of their client meetings explaining why a 1% position went down 50%." Out of $146 trillion in advisor-managed AUM, the $12.5 billion RIAs have allocated looks small — a sales-coverage gap, not a demand failure.
Market impact
Aaron Dimitri of Flow Traders said ETFs have shifted bitcoin from pure buy-and-hold exposure into portfolio construction — yield products, structured vehicles — making the exposure easier to package without removing the volatility. Simeon Hyman of ProShares pushed back on the framing: "Volatility is a feature, not a bug," citing bitcoin and ether both up 20% since the start of the war in Iran, and noting that futures-based BITO still trades at 35% of IBIT's daily volume.
Frequently asked questions
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How much do spot bitcoin ETFs hold in total?
Roughly a dozen US spot bitcoin ETFs hold around $107 billion in combined assets, with about $20 billion in institutional hedge funds, $12.5 billion from registered investment advisors, and 60% in direct retail accounts, according to Calamos's Christopher Russell.
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Why is Coinbase custody seen as a concentration risk for spot bitcoin ETFs?
CoinShares CEO Jean-Marie Mognetti argued that the bulk of spot bitcoin ETFs rely on a single custodian, creating concentration risk. While some issuers have layered in alternatives — Fidelity Digital Assets for FBIT, Anchorage for IBIT, Gemini for HODL — Coinbase remains the central piece of ETF infrastructure.
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What is the 1% problem in advisor bitcoin ETF adoption?
Calamos's Christopher Russell framed it as the gap between allocation and client communication: advisors can size a 1% position in a 50–60 vol asset, but don't want to spend half their client meetings explaining a 1% drawdown. The $12.5B in RIA allocations sits inside a $146T advisor-AUM pool.
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How do ProShares and Flow Traders differ on bitcoin ETF volatility?
Flow Traders' Aaron Dimitri said ETFs let institutions package exposure without removing volatility — "lap belt locks down before the ride." ProShares' Simeon Hyman pushed back: "Volatility is a feature, not a bug," citing BTC and ETH both up 20% since the start of the war in Iran and noting futures-based BITO still…
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What is the five-year bitcoin price target from the panel?
Calamos's Christopher Russell predicted Bitcoin reaches $1 million within five years, adding that "it's not going to be a straight line." The forecast lands against a softer near-term demand backdrop after Strategy reported a roughly $12.5 billion Q1 net loss.
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