BTC-USD Rallies Above $123K as Bitcoin ETF Inflows Smash $3.7B Weekly Record

Retail Power and Institutional Maturity Define Bitcoin ETF Surge

BTC-USD Soars Past $123,000 Amid $3.7 Billion ETF Inflows

Bitcoin (BTC-USD) has shattered fresh highs above $123,000, driven by back-to-back ETF inflows that have redefined market leadership. The rally is not speculative—it’s fueled by an unprecedented convergence of smart retail capital, institutional allocations, and regulatory momentum. As of July 2025, $158 billion is held in spot Bitcoin ETFs, of which $135 billion—85%—is retail-owned, according to Bloomberg’s Eric Balchunas. This undercuts the narrative that Bitcoin’s rally lacks grassroots support.

IBIT Dominates With $88B AUM, Becomes BlackRock’s Most Profitable ETF

The iShares Bitcoin Trust (IBIT) by BlackRock now manages $88 billion, making it not only the third-most traded ETF in the U.S. but also BlackRock’s most profitable product and seventh largest fund across its ETF portfolio. Daily flows have intensified: on July 10, Bitcoin ETFs attracted a record $1.18 billion, the highest daily inflow in 2025. That day alone, IBIT absorbed $1.76 billion, accounting for 65% of all Bitcoin ETF inflows.

ETF Demand Pushes Bitcoin AUM to $179.5B, Passing Half of Gold ETFs

CoinShares reports that Bitcoin’s AUM through ETFs has reached $179.5 billion, crossing the 50% threshold of gold ETF AUM globally. Total crypto ETF AUM now stands at $211 billion, breaking above the $200B ceiling for the first time ever. In the past week alone, Bitcoin ETFs brought in $2.72 billion, marking the fifth consecutive week of inflows, and bringing the YTD total to $22.7 billion.

Retail Shifts From Custody to ETFs—Plan B and Others Migrate Capital

The move away from self-custody wallets to ETFs is no longer theoretical. Notable Bitcoin bulls like Plan B have publicly confirmed transferring assets into ETF wrappers, citing greater safety, regulatory clarity, and integration with TradFi systems. Analysts call this the "second wave" of retail adoption—savvy, long-term capital that doesn’t sell at FUD headlines. This retail is not chasing hype; it’s anchoring BTC’s base.

Options Expiry and Short Liquidations Fuel Price Discovery

BTC’s rally beyond $120,000 has been accelerated by the expiration of short-dated options and mass short liquidations. As positions covering end-of-quarter expirations closed, Bitcoin surged like a coiled spring—similar to the rally from $70K to $90K in weeks last year. Pompliano notes that the short interest built up during the macro dip was unwound rapidly, pushing BTC into a new price discovery phase.

Trump Crypto Policy, Genius Act, and Stablecoin Clarity Drive Confidence

The political climate has also flipped bullish. U.S. lawmakers, led by the House of Representatives and backed by President Trump, are advancing crypto-centric legislation, including the Genius Act—a proposed framework for USD-backed stablecoins and regulated digital dollar issuance. Trump’s overt pro-crypto stance, combined with potential sovereign wealth fund investment in Bitcoin, has cemented confidence among institutional allocators.

Top Performing Bitcoin ETFs Beyond IBIT

• Fidelity FBTC: $399.98M inflows last week

• Ark/21Shares ARKB: $339.1M inflows

• Grayscale Bitcoin Mini Trust: $129.68M inflows

• Bitwise BITB: $86.57M inflows

• Vaneck HODL: $35.25M

• Invesco BTCO: $14.78M

• Valkyrie BRRR: $9.25M

The only outlier was Grayscale’s GBTC, which logged a $50.37 million outflow, consistent with long-term fee drag and restructuring risk.

Institutional Accumulation Outpaces Retail Speculation

Contrary to earlier cycles, institutional inflows are now consistently outpacing retail speculation. In just six weeks, institutions have bought $15 billion in BTC-USD ETFs, with allocations building across pension funds, hedge funds, and corporate treasuries. Daily ETF volumes now average $29 billion, over 2x the 2024 average.

Forecasts and Targets: BTC Eyes $140K–$160K by Year-End

Top research desks, including 10x Research, now place Bitcoin’s year-end target between $140,000 and $160,000, citing ETF-driven demand, long-term holder supply lock, and macro resilience. BTC has already cleared its former all-time high of $110,000, confirming a full price discovery setup.

Final Take: BTC-USD Is a BUY

The combination of explosive ETF inflows, a maturing investor base, accelerating institutional allocations, and political tailwinds creates a bullish setup that’s fundamentally grounded. BTC-USD has moved into a new regime—one defined by regulated access, deeper liquidity, and sophisticated ownership. Price discovery is not speculative—it’s structural. BTC-USD is a BUY.

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