Bitcoin News Today: Bitcoin ETFs Attract $150 Billion Inflows 160% Price Surge Since Approval

Bitcoin ETFs have triggered a seismic shift in the cryptocurrency market, with inflows exceeding $150 billion since the U.S. Securities and Exchange Commission (SEC) approved 11 such products in January 2024. These funds now hold over 6% of the total circulating Bitcoin supply, amassing more than 1.29 million BTC across all offerings. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) dominate the landscape, with assets under management (AUM) of $87.5 billion and $24.6 billion, respectively, as of July 2025 [1].

The demand surge is starkly outpacing Bitcoin’s mining supply. Daily purchases by ETFs frequently exceed the amount of new BTC created by miners by a factor of 10, a trend amplified after the April 2024 halving event. This imbalance has fueled a 160% increase in Bitcoin’s price since ETF approval, reshaping market dynamics and drawing both institutional and retail investors to a regulated, familiar investment vehicle [1].

The ETFs operate by holding actual Bitcoin as underlying assets, with issuers partnering with Authorized Participants—large financial firms—to acquire BTC on open markets. These purchases are then exchanged for ETF shares, aligning the fund’s value with Bitcoin’s price. Custodians like Coinbase and Fidelity manage storage, ensuring institutional-grade security [1].

Legal battles paved the way for this milestone. In 2023, a federal court ruled in favor of Grayscale, stating the SEC had not adequately justified its rejection of spot Bitcoin ETFs compared to futures-based alternatives. This decision, combined with market demand, culminated in the January 2024 approvals [1].

The structural impact of these ETFs is profound. While Grayscale’s GBTC lags with $22 billion in AUM due to its 1.50% expense ratio, newer funds like Bitwise and ARK are competing with lower fees. However, their trading volumes remain significantly smaller than IBIT and FBTC, underscoring the dominance of established players [1].

The market’s rapid evolution highlights a critical tension: ETF-driven demand now outstrips Bitcoin’s natural supply growth. This dynamic could further drive price volatility and test the resilience of the crypto ecosystem, particularly as mining supply adjusts to halving cycles. Investors and regulators alike are watching closely to assess the long-term implications of this unprecedented capital influx.

Source:

[1] ["Bitcoin ETFs Attract $150 Billion Inflows, Creates 'Demand Shock'"] [https://coinedition.com/bitcoin-spot-etfs-attract-150-billion-inflows-creates-demand-shock-btc-supply/]