Before the ETFs, bitcoin ownership tilted more heavily toward retail investors, crypto-native funds and traders making tactical bets, Rasmussen said. ETFs gave financial advisers and other professional investors a familiar way to add bitcoin to traditional portfolios.

Those investors tend to approach bitcoin differently.

Rasmussen said a professional investor might allocate around 2% of a portfolio to bitcoin, while crypto-focused retail investors can have 20%, 30%, or more of their money tied to the asset. A crash, therefore, looks very different depending on who owns it.

“If it goes down 50%, my portfolio is only down 1%,” Rasmussen said in an interview, describing how an investor with a 2% allocation might view the decline.

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