US-based Bitcoin exchange-traded funds recorded their second consecutive week of inflows exceeding $2 billion, capping a 12-day streak of positive investment flows that coincided with President Donald Trump signing the nation's first major cryptocurrency legislation. The $2.39 billion weekly performance came as Bitcoin reached a new all-time high of $122,800, reinforcing growing institutional confidence in digital assets.
What to Know:
- Bitcoin ETFs posted $363.45 million in daily inflows on Friday, extending their streak to 12 consecutive days of positive flows
- BlackRock's iShares Bitcoin Trust led with $496.75 million in Friday inflows, approaching $90 billion in total assets
- The surge followed Trump's signing of the GENIUS Act on July 18, marking the first crypto bill signed into law
Record Inflows Follow Historic Week
The Friday inflow of $363.45 million represented the culmination of an unprecedented run for Bitcoin investment products. BlackRock's iShares Bitcoin Trust dominated the landscape, contributing $496.75 million of the day's total and solidifying its position as the sector's heavyweight.
The fund's assets under management now approach the $90 billion threshold, a milestone that underscores the rapid institutional adoption of cryptocurrency exposure.
WisdomTree's Bitcoin Trust emerged as the only other fund recording positive flows Friday. The exchange-traded fund attracted $3.11 million in new investment, marking its first significant activity since experiencing withdrawals during late March and April. This return to positive territory suggests renewed investor confidence across the broader Bitcoin ETF landscape.
Five other major Bitcoin ETFs recorded net outflows totaling $136.42 million on Friday. Fidelity Wise Origin Bitcoin Fund, Grayscale Bitcoin Trust, ARK 21Shares ETF, Bitwise Bitcoin ETF, and VanEck Bitcoin ETF all experienced withdrawals. Despite these outflows, the overall market maintained its positive trajectory, demonstrating the strength of current institutional demand.
Policy Catalyst Sparks Optimism
The timing of these record inflows coincided with a significant policy development. President Trump signed the GENIUS Act into law on July 18, creating the first federal legislation specifically addressing cryptocurrency markets. This regulatory milestone occurred on the same day Bitcoin ETFs recorded their substantial inflows, suggesting policy clarity may be driving institutional participation.
The 12-day positive streak represents an extraordinary period of sustained institutional interest. Such extended periods of consistent inflows are rare in any asset class and particularly notable for a relatively new investment category.
The pattern indicates that institutional investors are viewing current market conditions as an opportune entry point for Bitcoin exposure.
Market observers note that the current inflow pattern differs markedly from previous cryptocurrency investment cycles. Rather than retail-driven speculation, institutional money appears to be driving the current surge. This shift toward institutional participation may provide greater stability and legitimacy to Bitcoin markets moving forward.
Bitcoin Reaches New Heights
Bitcoin's price performance provided the backdrop for the ETF surge. The cryptocurrency reached $122,800 during the week, establishing a new all-time high that exceeded previous records by significant margins. Current trading levels around $118,000 represent more than 12% gains over the past month, according to CoinGecko data.
The price appreciation occurred alongside the ETF inflows, creating a reinforcing cycle of positive sentiment. Higher Bitcoin prices typically attract additional institutional interest, while increased ETF participation can drive further price appreciation. This dynamic appears to be playing out in current market conditions.
Trading volumes and market activity remained elevated throughout the period. The combination of policy developments, price appreciation, and institutional inflows created what market participants describe as an optimal environment for cryptocurrency adoption.
Market Implications
The sustained inflow pattern represents more than typical market volatility. Two consecutive weeks exceeding $2 billion in inflows suggest a structural shift in institutional attitudes toward Bitcoin investment. Traditional financial institutions increasingly view Bitcoin ETFs as legitimate portfolio diversification tools rather than speculative investments.
The concentration of inflows in BlackRock's offering reflects the importance of established financial brands in cryptocurrency adoption. Investors appear to gravitate toward familiar institutional names when entering the Bitcoin market, potentially accelerating mainstream acceptance.
Closing Thoughts
The second consecutive $2 billion week for Bitcoin ETFs, driven by Trump's signing of the GENIUS Act and Bitcoin's climb to $122,800, signals a potential inflection point for institutional cryptocurrency adoption. With BlackRock's fund approaching $90 billion in assets and 12 straight days of positive flows, the market demonstrates unprecedented institutional confidence in digital asset exposure.