Bitcoin News Today: SEC approves spot Bitcoin ETFs volatility aligns with equity ETFs 90-day 25.70% price rise

Bitcoin’s market dynamics have undergone a significant transformation since the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs) in January 2024. The introduction of these ETFs has led to reduced price volatility, attracting institutional investors and reshaping Bitcoin’s role in traditional finance. Analysts attribute this shift to the ETFs’ ability to absorb liquidity from the open market, with reports indicating that ETFs now hold over 3% of Bitcoin’s total supply. This structural change aligns Bitcoin’s volatility with major equity ETFs, a development that has drawn comparisons to the historical impact of gold ETFs on institutional adoption of precious metals [1].

The stabilization effect is evident in Bitcoin’s price behavior. According to Eric Balchunas of Bloomberg, the cryptocurrency’s volatility now mirrors that of prominent equity ETFs, making it a more palatable asset for institutional portfolios. CoinMarketCap data shows Bitcoin trading at $118,271.30 as of July 27, 2025, with a 25.70% rise over 90 days and a 0.60% increase in the last 24 hours. These metrics highlight a trend toward sustained, less erratic price movements compared to pre-ETF levels. Mitchell Askew of Blockware BTC argues that the approval of spot ETFs has “permanently altered” Bitcoin’s market landscape, reducing the likelihood of parabolic surges and fostering long-term stability [2].

Institutional adoption has surged alongside these developments. The ETFs’ structure allows direct exposure to Bitcoin’s price without the complexities of futures-based funds, which previously faced regulatory hurdles. This accessibility has spurred a “multi-year trend of capital accumulation,” according to market analyses, with analysts predicting Bitcoin’s integration into mainstream financial portfolios [3]. Volcon Inc.’s recent acquisition of 3,183 Bitcoin at an average price of $117,697 per unit underscores corporate investors’ continued confidence in the asset class, even during market peaks [4].

However, the narrative is not uniformly bullish. Robert Kiyosaki, a prominent financial commentator, has criticized ETFs—regardless of the underlying asset—as symbolic representations of wealth rather than tangible assets. He warns that during systemic crises, counterparty risks such as custodial defaults or redemption freezes could undermine ETF liquidity, advocating instead for direct ownership of physical assets like Bitcoin and gold [5]. This perspective reflects ongoing skepticism about derivatives-based exposure in extreme market conditions.

The structural impact of spot ETFs extends beyond volatility reduction. Unlike futures-based funds, which relied on futures contracts and were prone to market manipulation risks, spot ETFs offer direct transparency in Bitcoin’s price movements. This has bridged gaps between crypto and traditional asset classes, with Ethereum ETFs and other digital-asset funds also attracting capital. The Coincu research team notes that lower volatility could further solidify Bitcoin’s position as a stable, long-term investment, aiding broader market acceptance [6].

While forecasts for Bitcoin’s price trajectory remain speculative, the post-ETF landscape is undeniably different. Analysts like Citi have projected the cryptocurrency reaching $135,000 by year-end, with a 60% probability of hitting $130,000 within two months. These projections, however, should be treated as speculative given the inherent uncertainty in cryptocurrency markets. The debate between physical asset ownership and ETF-based exposure underscores broader discussions about risk management in an increasingly interconnected financial system.

Sources:

[1] Bitcoin News Today: Bitcoin ETFs Cut Volatility by 40% [https://www.ainvest.com/news/bitcoin-news-today-bitcoin-etfs-cut-volatility-40-draw-50-billion-inflows-signaling-stable-market-shift-2507/]

[2] Bitcoin's Boom-and-Bust Cycles: A New Era? [https://www.indexbox.io/blog/bitcoins-boom-and-bust-cycles-a-new-era/]

[3] Bitcoin Eyes $130000 as ETF Inflows and $110K Support Boost Price [https://www.ainvest.com/news/bitcoin-news-today-bitcoin-eyes-130-000-etf-inflows-110k-support-boost-price-60-probability-months-2507/]

[4] Volcon Invests Heavily in Bitcoin Amid Market Peaks [https://m.economictimes.com/crypto-news-today-live-25-jul-2025/liveblog/122889124.cms]

[5] Kiyosaki Turns to Bitcoin and Gold as Crisis Looms [https://www.cointribune.com/en/kiyosaki-bets-on-bitcoin-and-precious-metals-to-survive-the-looming-crisis/]

[6] Public Keys: Strategy Stretches Bitcoin Raise and Blackrocks Ethereum ETF Hits Warp Speed [https://cryptoadventure.com/public-keys-strategy-stretches-bitcoin-raise-and-blackrocks-ethereum-etf-hits-warp-speed/]