Institutional Demand Fuels $408M Inflows Into Bitcoin ETFs

Fidelity and ARK drive fresh institutional demand for Bitcoin ETFs, while Ethereum products slip into outflows amid market divergence.

Bitcoin exchange-traded funds (ETFs) witnessed a significant resurgence on July 2, pulling in $407.78 million in net daily inflows and pushing total assets under management to $136.68 billion. In stark contrast, Ethereum ETFs recorded modest $1.8 million in outflows, highlighting a growing divergence in institutional investor sentiment.

Bitcoin ETFs Dominate Institutional Flows

Fueled by rising institutional confidence and strong price performance, Bitcoin ETFs continue to attract substantial capital inflows. On July 2, the inflows marked one of the highest daily tallies in recent months, underlining Bitcoin’s ongoing appeal among asset managers.

• Fidelity’s FBTC led with $183.96 million in daily net inflows.
• ARK 21Shares’ ARKB followed with $83 million, and Bitwise’s BITB added $64.94 million.
• Despite recording no inflows on the day, BlackRock’s iShares Bitcoin Trust (IBIT) remains dominant, managing $76.31 billion in net assets and $52.42 billion in cumulative inflows since its launch.

Total Bitcoin ETF inflows have now reached $49.04 billion, representing 6.3% of Bitcoin’s total market capitalization. The increased participation comes as Bitcoin traded above $109,000 on July 2, approaching key resistance levels around $112,000.

Trading Volume Confirms Market Confidence

Daily trading volume across Bitcoin ETFs also reflected renewed interest, totaling $5.22 billion. Notably, IBIT alone contributed $4.08 billion, showcasing its entrenched position as the most actively traded crypto ETF.

This surge highlights the momentum that has defined 2025’s ETF landscape so far—one where regulated access and institutional structures are becoming the preferred method for crypto exposure.

Institutional Demand Broadens Beyond BlackRock

While BlackRock pioneered the early wave of Bitcoin ETF adoption, the current landscape shows a shift toward more diversified institutional participation.

• Fidelity’s rising inflows suggest that competition among major asset managers is intensifying.
• This broader distribution of assets indicates that institutional adoption is no longer concentrated in a single issuer.

The use of ETFs by corporate treasuries is also on the rise. Notably, Figma disclosed in its IPO filing that it holds $69.5 million in Bitcoin ETFs, with plans to allocate an additional $30 million toward crypto investments. This trend suggests that companies seeking crypto exposure increasingly favor regulated financial instruments over direct custody.

Meanwhile, Europe is also seeing increased activity. UniCredit recently launched a Bitcoin ETF certificate aimed at Italian professional investors. The five-year product offers capital protection and up to 85% participation in upside, reflecting growing demand for structured crypto products across jurisdictions.

Regulatory Tailwinds Bolster Crypto ETFs

Regulatory clarity is playing a key role in sustaining this institutional momentum. On July 1, the U.S. Securities and Exchange Commission (SEC) released updated guidance for crypto-based ETFs, streamlining the approval process.

Key highlights of the new SEC framework include:

• Standardized disclosure requirements
• Transparency in custody and redemption processes
• A 75-day review period for new ETF applications

This development is widely seen as a pivotal moment, laying the groundwork for the next wave of crypto ETFs—potentially including those that incorporate staking and multi-asset strategies.

Ethereum ETFs Face Setback After June Rally

Ethereum ETFs, which had enjoyed a surge in June with $240.29 million in daily inflows at their peak, have reversed course. The outflows on July 2 signal potential profit-taking following ETH’s technical breakout above long-term downtrends.

Ethereum reached a local high of $2,834 last week before facing resistance. The recent pullback is seen as part of a consolidation phase, with the next bullish target around $3,300, assuming continued macro support.

Still, long-term holders remain committed. Ethereum staking hit an all-time high of 34.65 million ETH locked on the Beacon Chain, accounting for nearly 29% of the circulating supply. This indicates confidence in Ethereum’s future, even amid short-term ETF volatility.

Future Outlook: Multi-Asset and Staking ETFs Emerging

Despite Ethereum’s current ETF outflows, developments in the multi-asset ETF space suggest potential for broader crypto portfolio products.

• Grayscale’s Digital Large Cap Fund recently transitioned into an ETF structure, offering exposure to Bitcoin (79.9%), Ethereum (11.3%), Solana, XRP, and Cardano.
• The launch of the REX Osprey Solana Staking ETF—the first U.S.-listed ETF to include staking—could pave the way for Ethereum-based staking ETFs, marrying yield generation with regulated access.

This evolution supports a growing market for hybrid crypto ETFs that appeal to investors seeking both price exposure and passive income.

Strategic Implications for Crypto Markets

The diverging flows between Bitcoin and Ethereum ETFs signal a market shift: while Bitcoin consolidates its role as a macro-institutional asset, Ethereum is still navigating the transition between infrastructure narrative and financial utility.

If current trends continue, the ETF sector may soon serve as a proxy for broader crypto adoption, influencing both price action and investor behavior. As regulators, corporations, and fund managers align, ETFs are fast becoming the new battleground for crypto dominance.

With institutional appetite accelerating and the regulatory climate improving, Bitcoin ETFs appear poised to lead the next phase of capital inflows—leaving Ethereum and altcoin products to play strategic catch-up.