Corporate Bitcoin Purchases Outpace ETFs for Third Straight Quarter

Publicly traded companies have continued to demonstrate a strong appetite for Bitcoin, outpacing exchange-traded funds (ETFs) in purchases for the third consecutive quarter. Firms such as ProCap BTC LLC, Strategy, and Metaplanet have been actively building their positions in Bitcoin, viewing it as a strategic asset. This trend underscores the strategy of buying during price drawdowns, as noted by analysts at QCP Capital.

The regulatory environment for cryptocurrencies is also evolving rapidly. The Securities and Exchange Commission (SEC) has accelerated the approval process for ETFs based on crypto-assets. Notably, the SEC has approved the launch of Ethereum- and Solana-based ETFs with staking capabilities and has given the green light to the Grayscale fund, which includes a diverse range of cryptocurrencies such as BTC, ETH, XRP, SOL, and ADA. Additionally, the SEC is considering common listing standards for token-based funds, which could simplify and expedite their approval process in the future.

Corporate adoption of digital assets is on the rise. Bitmine, for instance, raised $20 million to accumulate Ethereum and generate staking revenue. DeFi Development received $100 million to acquire Solana and buy back shares. Infrastructure players are also expanding their presence. USDC stablecoin issuer Circle has applied for a banking license in the US, while Robinhood has been active in Europe, launching open-ended futures and tokenized shares.

Despite the growing liquidity in the cryptocurrency market, implied volatility remains near historic lows. Traders' positions indicate an accumulation of Bitcoin, with its dominance holding at a multi-year high of 65–66%. Analysts noted that retail traders have taken a pause, while institutional traders are quietly building up positions. Experts expect a possible change in the volatility regime in the third and fourth quarters.

Macroeconomic conditions in the U.S. remain favorable for risk assets, including cryptocurrencies. President Donald Trump has criticized Fed chief Jerome Powell and signaled his intention to appoint a successor committed to cutting rates. Markets are already pricing in more rate cuts than the Federal Reserve is predicting, which has positively impacted digital assets. However, the backdrop in the altcoin sector remains subdued.

In June, U.S. ETFs based on Bitcoin recorded an outflow of $342.2 million, breaking a 15-day streak totaling $4.7 billion. This outflow highlights the shifting dynamics between corporate purchases and ETF investments in the cryptocurrency market. Despite this, the overall trend of corporate adoption and regulatory approvals suggests a bullish outlook for Bitcoin and other digital assets in the near future.