Swan Bitcoin CEO Says Retail Investors Still Drive Bitcoin Prices in ETF Era

Spot Bitcoin exchange-traded funds have become a mainstay investment vehicle, but retail investors still wield major influence over Bitcoin prices, Cointelegraph reported on May 29, citing Swan Bitcoin Chief Executive Officer Cory Klippsten.

In a recent interview at the Bitcoin Vegas 2026 event, Klippsten said BlackRock and Fidelity do not themselves own the Bitcoin. Instead, the people buying Bitcoin ETFs are mostly retail investors, he said.

Klippsten argued that demand flowing through ETFs still amounts to genuine spot demand. Investors are simply buying Bitcoin through an ETF wrapper, while fund issuers must acquire and custody actual Bitcoin, reducing the amount available in the market.

Futures and some derivatives can function differently from the underlying supply, he said. On-chain Bitcoin is different because actual Bitcoin has to be bought and held, which he described as one of the asset's distinctive features.

Still, sentiment in the Bitcoin market has weakened recently. U.S. spot Bitcoin ETFs have recorded net outflows totaling $2.9 billion since May 15, according to Farside Investors. Bitcoin has fallen about 9.5% over the same period.

Market mood has also deteriorated. The Crypto Fear & Greed Index, a measure of sentiment in digital-asset markets, stood at 23 that day, placing it in the Extreme Fear zone. The reading suggests investors are taking a more cautious approach to risk assets.

Klippsten also said the odds of Bitcoin reaching a new all-time high this year have fallen. Earlier this year, when Bitcoin traded near $95,000, he put the probability of a fresh record at about 50%. He now estimates the odds at 20% to 25%.

"Given that Bitcoin is still trading in the $70,000 range and at one point fell to around $60,000, the chances of setting a new all-time high this year are much lower than before," Klippsten said.