Institutional Cash Floods Crypto ETFs as Bitcoin Nears $120K Breakout

Bitcoin and Ethereum exchange-traded funds (ETFs) have seen a record surge in inflows, with combined daily inflows exceeding $600 million on September 12, 2025, according to data from SosoValue. Bitcoin ETFs alone attracted $642.35 million in inflows, while Ethereum ETFs saw $405.55 million. These figures reflect a significant increase in institutional demand for digital assets and underscore growing confidence in the long-term value of cryptocurrencies.

The performance of Bitcoin ETFs, in particular, highlights a strong bullish trend. Total net inflows for the week reached $2.34 billion, despite an initial outflow of $227.48 million earlier in the week. Fidelity’s FBTC led the pack with $315.18 million in daily inflows, followed by BlackRock’s product with $264.71 million. As a result, the total asset value of Bitcoin ETFs now stands at $153.18 billion, representing 6.62% of Bitcoin’s market capitalization. Bitcoin’s price has risen by 4.38% over the past seven days, currently trading at $116,092.

Ethereum ETFs have similarly shown positive momentum, with daily inflows reaching $404.55 million on September 12. The cumulative inflows for Ethereum ETFs now amount to $13.36 billion, and the total traded value has climbed to $2.55 billion. Ethereum’s price has gained 8.34% over the past seven days and currently stands at $4,665. Fidelity’s FETH led the weekly inflow activity with $168.23 million, while BlackRock’s offering followed closely with $165.56 million.

The surge in inflows is occurring amid favorable macroeconomic conditions. A Reuters survey of 107 economists indicates that 105 of them anticipate at least three U.S. Federal Reserve rate cuts before the end of 2025. These expected cuts are seen as a catalyst for improved liquidity, which could make risk-on assets like Bitcoin more attractive. Analysts note that the technical indicators for both Bitcoin and Ethereum are aligned with potential upward price movement. For Bitcoin, a breakout above $120,000 could signal a rally toward $150,000 by early 2026, while Ethereum is being watched closely for a potential push toward $5,000.

The institutional adoption of crypto ETFs is also gaining momentum, with major financial players such as Fidelity and BlackRock playing leading roles in the asset class. This marks a shift from earlier years, when regulatory uncertainty limited large firms’ participation in the market. Today, pension funds, asset managers, and hedge funds are increasingly allocating portions of their portfolios to digital assets, viewing them as a strategic addition to traditional investments. As a result, cryptocurrencies are no longer confined to speculative retail trading but are being recognized as mainstream financial instruments with long-term growth potential.