The cryptocurrency market witnessed a powerful shift on July 2, as Bitcoin ETFs pulled in a staggering $407.78 million** in net inflows—marking one of the strongest daily performances of 2025. This surge pushed cumulative Bitcoin ETF inflows to **$49.04 billion, reinforcing institutional confidence in Bitcoin as a long-term store of value.
In stark contrast, Ethereum ETFs experienced minor outflows of $1.8 million, signaling a temporary cooling in momentum despite earlier gains. The divergence highlights a growing preference among institutional investors for Bitcoin over other digital assets, particularly during periods of market consolidation.
Bitcoin ETFs Break Daily Records Amid Institutional Frenzy
On July 2, Bitcoin’s price climbed to weekly highs near $109,000**, reigniting speculation about an imminent breakout toward the **$112,000 resistance level. This price strength was mirrored by robust demand for regulated exposure through exchange-traded funds.
Total assets under management (AUM) across Bitcoin ETFs reached $136.68 billion, now representing 6.30% of Bitcoin’s total market capitalization—a clear indicator of deepening institutional adoption.
Daily trading volume surged to $5.22 billion**, with BlackRock’s IBIT alone accounting for **$4.08 billion in activity. While IBIT reported zero net inflows on that specific day, it remains the largest player in the space with $76.31 billion in AUM** and **$52.42 billion in cumulative inflows since launch.
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Fidelity and ARK Lead the Charge
Fidelity’s FBTC emerged as the top performer, attracting $183.96 million in fresh capital—its strongest single-day inflow in months. This momentum reflects growing competition among asset managers to capture market share in the rapidly expanding crypto ETF landscape.
ARK Invest and 21Shares’ ARKB followed closely behind with $83 million**, while Bitwise’s **BITB** added **$64.94 million. These flows underscore a broadening base of institutional participation, moving beyond early dominance by BlackRock and Fidelity into a more diversified ecosystem of financial innovation.
Corporate Adoption Accelerates Through Regulated Products
A major driver behind the surge in Bitcoin ETF demand is shifting corporate treasury strategy. More public companies are opting for regulated financial instruments rather than direct Bitcoin holdings due to compliance, custody, and reporting advantages.
One notable example is design software company Figma, which recently disclosed in its IPO filing $69.5 million invested in Bitcoin ETFs**, with an additional **$30 million allocated for future crypto investments.
This trend is no longer isolated—over 141 public companies now hold approximately $91 billion in Bitcoin-related assets, primarily through ETFs and trusts. As regulatory clarity improves, this number is expected to grow significantly throughout 2025.
Global Expansion Fuels Demand
Europe is also embracing crypto ETFs through structured financial products. Italian banking giant UniCredit recently launched a five-year Bitcoin ETF certificate tailored for professional clients, offering capital protection with 85% upside participation.
Such innovations make Bitcoin accessible to risk-averse institutional investors who seek exposure without full volatility exposure—further expanding the potential investor base.
Regulatory Clarity Paves the Way for Growth
On July 1, the SEC released updated guidance streamlining the approval process for token-based ETFs, including a standardized 75-day review timeline. The new framework addresses key concerns such as:
- Custody arrangements
- Conflict-of-interest disclosures
- Creation and redemption mechanisms
This regulatory progress has not only accelerated Bitcoin ETF adoption but also laid the groundwork for future approvals of multi-asset crypto ETFs and potentially even Ethereum staking ETFs.
Grayscale’s recent conversion of its Digital Large Cap Fund exemplifies this evolution—it now holds 79.9% Bitcoin, 11.3% Ethereum, and smaller allocations to XRP, Solana, and Cardano—reflecting a diversified yet institutionally palatable portfolio.
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Ethereum ETFs Face Short-Term Headwinds
Despite strong momentum in June—when Ethereum ETFs pulled in $240.29 million** in a single day and outpaced Bitcoin—July has started with a pullback. On July 2, the sector saw net outflows of **$1.8 million, suggesting profit-taking or strategic rebalancing after ETH briefly surpassed $2,800, its highest level since February.
BlackRock’s Ethereum fund (ETHA) had led the charge earlier, recording $163.6 million** in one-day inflows and maintaining a 23-day streak without outflows. It currently manages over **1.55 million ETH**, valued at **$4.23 billion.
Technical Indicators Suggest Consolidation
From a technical perspective, Ethereum completed an inverse head-and-shoulders pattern earlier this year, projecting a target near $3,300**. However, recent rejection at **$2,834 indicates short-term resistance and possible consolidation before the next leg up.
Meanwhile, on-chain data reveals enduring long-term conviction: 34.65 million ETH are now staked on the Beacon Chain—nearly 29% of the total circulating supply. Investors are prioritizing yield generation through staking over immediate liquidity, even amid fluctuating ETF flows.
The Rise of Staking-Enabled Crypto ETFs
A pivotal development occurred this week with the launch of the REX Osprey Solana Staking ETF, the first U.S.-listed fund to incorporate native staking rewards directly into its structure.
This innovation could serve as a blueprint for future Ethereum staking ETFs, combining regulated access with passive income—a compelling proposition for income-focused institutional investors.
With regulatory support strengthening and product innovation accelerating, multi-asset and yield-bearing crypto ETFs are poised to become mainstream investment vehicles by late 2025.
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Frequently Asked Questions (FAQ)
Q: Why are Bitcoin ETFs outperforming Ethereum ETFs recently?
A: Bitcoin ETFs are benefiting from stronger institutional demand, perceived stability as digital gold, and broader adoption in corporate treasuries. Additionally, BTC’s price resilience above $100,000 has reinforced investor confidence.
Q: What caused the $1.8 million outflow in Ethereum ETFs?
A: The outflow likely reflects short-term profit-taking after Ethereum’s price surge above $2,800 and technical breakout completion. It does not indicate weakening long-term sentiment, especially given high staking levels.
Q: How much of Bitcoin’s market cap is now held in ETFs?
A: Bitcoin ETFs collectively manage $136.68 billion, representing 6.30% of Bitcoin’s total market capitalization—a record level of institutional ownership.
Q: Are more crypto ETFs expected to launch in 2025?
A: Yes. Regulatory improvements and investor demand are paving the way for new multi-asset and staking-enabled ETFs, including potential Ethereum staking products.
Q: Can companies invest directly in Bitcoin instead of using ETFs?
A: While possible, many public companies prefer ETFs for easier compliance, auditability, and integration into traditional financial reporting systems.
Q: What role do staking rewards play in new crypto ETF designs?
A: Staking rewards add yield potential to ETFs, making them more attractive to conservative investors seeking both exposure and passive income—similar to dividend-paying stocks.
Core Keywords: Bitcoin ETF, Ethereum ETF, institutional adoption, crypto regulation, staking ETF, Fidelity FBTC, ARK ARKB, BlackRock IBIT