Bitcoin News Today: Bitcoin Surges 30% Year-to-Date Driven by Institutional Demand and Policy Clarity

VanEck, a prominent investment management firm, has identified several key drivers behind the recent surge in Bitcoin prices. According to Matthew Sigel, the head of digital assets research at VanEck, Bitcoin has seen a 30% increase year-to-date, outperforming gold, the MSCI ACWI, and the S&P 500. This rally is attributed to deepening institutional engagement, favorable macro conditions, and emerging policy clarity.

One of the significant drivers of Bitcoin's demand is corporate treasuries. Companies have bought more than 300,000 BTC this year, more than double the amount absorbed by spot Bitcoin exchange-traded funds (ETFs). This shift indicates that Bitcoin is moving from speculative trading desks to strategic balance sheets. MicroStrategy and MetaPlanet remain the largest accumulators, but a surge in shells, reverse mergers, and SPACs (special purpose acquisition companies) has fueled fresh capital formation in the sector.

Spot Bitcoin ETFs have also seen substantial inflows, with $3.7 billion in net inflows recorded so far this month and year-to-date inflows hovering around $16 billion. This growing participation across retail, RIAs (registered investment advisors), and wirehouse platforms such as Morgan Stanley and Merrill Lynch reflects broader institutional acceptance. Lower volatility in Bitcoin, which dropped to around 23% in early July, is making it easier for institutional portfolios to size Bitcoin, particularly for allocators focused on Sharpe ratios and downside risk.

Policy tailwinds in Washington, DC, are also contributing to Bitcoin's rise. Three key bills under review include the GENIUS Act (stablecoins), the CLARITY Act (market structure), and the Anti-CBDC Act. The potential passage of these bills signals bipartisan appetite to legitimize fiat-backed stablecoins and could unlock a wave of new issuance and payment infrastructure. Additionally, the potential for two interest rate cuts from the U.S. Federal Reserve later this year could support flows into Bitcoin and gold.

Miners continue to remain net holders following the April 2024 BTC halving, with their balances recently reaching a 12-month high. Only approximately 5.2% of Bitcoin supply has moved in the last 30 days, indicating strong holder conviction and reduced available float. This strong institutional engagement, favorable macro conditions, and emerging policy clarity are expected to continue driving Bitcoin's price higher.