Bitcoin ETF Inflows Hit $158B, Fueling BTC Rally Beyond $123K
Historic inflows into Bitcoin ETFs signal a fundamental shift in institutional strategy, tightening supply and setting up BTC for $200K targets | That's TradnigNEWS
Bitcoin ETF Inflows Reshape Crypto Market in 2025
Spot Bitcoin ETFs Surge Past $158 Billion in AUM
The inflow explosion into spot Bitcoin ETFs has redefined institutional adoption in 2025. As of July, U.S.-based spot Bitcoin ETFs logged over $2.72 billion in weekly net inflows, including a record-breaking back-to-back $1.17 billion and $1.03 billion on July 11 and 12, respectively. This marks the first time since their 2024 launch that these products achieved consecutive billion-dollar inflow days.
BlackRock’s iShares Bitcoin Trust (IBIT) leads this charge, crossing $80 billion in AUM in just 374 days — the fastest ETF in history to do so. ETF analyst Eric Balchunas noted that IBIT now generates more revenue than BlackRock’s flagship iShares Core S&P 500 ETF (IVV). Total assets across all Bitcoin ETFs are now north of $158 billion, signaling that institutional investors have rapidly shifted their allocation behavior in 2025.
BTC-USD Hits $123,000 as Supply Crunch Intensifies
The spot price of Bitcoin (BTC-USD) has surged above $123,000, with daily closes near $119,800, setting multiple new all-time highs. The catalyst? A severe imbalance between ETF demand and natural Bitcoin issuance. On days when only 450 BTC are mined, ETFs are buying up to 10,000 BTC, creating a 22x mismatch that’s fueling vertical price action.
Implied volatility has dropped to 28%, with realized volatility falling to 22–25%, marking a 20-month low. This indicates that institutional ETF buyers are providing a stabilizing floor. BTC's volatility compression coincides directly with the January 2024 launch of U.S. spot ETFs, creating smaller, steadier daily gains and fewer drawdowns.
BlackRock Crypto Inflows Jump +366% in Q2 Despite Net Outflows
Despite BlackRock’s overall inflows dropping 19% in Q2 2025 due to a $52 billion institutional redemption, crypto ETF flows soared. Inflows into BlackRock’s digital asset funds jumped from $3 billion in Q1 to $14 billion in Q2, representing a +366% quarterly surge. Crypto now accounts for 16.5% of total ETF flows at BlackRock, up from just under 3% in the prior quarter.
CEO Larry Fink emphasized that this segment, while only 1% of base fees today, is growing exponentially and attracting a new global generation of investors. BlackRock’s crypto revenue reached $40 million in Q2, up from $34 million in Q1, further indicating rising fee-based profitability from the digital asset class.
Legislative Catalysts Spark Capital Inflows During “Crypto Week”
The institutional flood into Bitcoin ETFs coincided with a major U.S. legislative push. Dubbed “Crypto Week,” the U.S. House began deliberation on landmark bills such as the Genius Act, which would regulate USD-pegged stablecoins and allow private firms to issue digital dollars. President Donald Trump—a vocal crypto proponent—has backed these initiatives while launching his own ETF vehicle.
This policy clarity was a key factor in renewed ETF buying. Markus Thielen of 10x Research cited $15 billion in institutional ETF purchases over the past 6–8 weeks, largely driven by increasing confidence in future crypto oversight. Meanwhile, spot ETF flows now account for over 42% of all crypto fund flows in 2025, according to CoinShares.
Bitcoin Bonds, Corporate Treasuries Add Fuel to the Fire
El Salvador further expanded Bitcoin’s institutional profile with a new issuance of $500 million in BTC-backed bonds on the Liquid Network. Simultaneously, over 51 corporations — including Strategy (MSTR) and GameStop (GME) — have added Bitcoin to their balance sheets, fueling the treasury management revolution.
This growing corporate involvement highlights Bitcoin’s evolution into a treasury-grade reserve asset. By integrating Bitcoin into balance sheets, firms are betting on long-term appreciation and hedging against fiat devaluation. For investors, this reinforces the credibility of BTC as an institutional macro-hedge.
Buy, Sell, or Hold: Is BTC-USD a Buy Now?
The data points to one clear conclusion: Buy. The combination of ETF-driven scarcity, record-breaking capital inflows, supportive policy, and corporate balance sheet adoption creates a fundamentally bullish foundation. If current trends hold, forecasts of $150,000–$200,000 BTC by year-end are well within reach.
While volatility could spike on macro risk or regulatory shocks, the structural demand from ETFs, combined with suppressed issuance, is unlike any prior Bitcoin bull run. In a market now defined by regulated institutional flows, BTC-USD is transitioning from speculative asset to long-term anchor in diversified portfolios.
