Crypto ETFs Attract $1.5 Billion Inflows In 24 Hours Driving Bitcoin To $118,500

In a remarkable display of market momentum, the crypto sector has witnessed an unprecedented surge in investment, with Bitcoin and Ethereum ETFs attracting over a billion dollars in a single day. This influx of capital underscores a growing institutional interest in digital assets, as traditional financial giants like BlackRock and Fidelity lead the charge with their highly popular ETFs.

Bitcoin's price soared to a new all-time high of $118,500, marking a significant milestone in its journey. This surge was not an isolated event but part of a broader trend where Ethereum also briefly surpassed the $3,000 mark. The momentum in the crypto market has been building for some time, with ETFs playing a crucial role in driving this growth. In just 24 hours, crypto ETFs saw net inflows of $1.5 billion, with a significant portion of this investment directed towards Bitcoin.

BlackRock's IBIT ETF led the way with $448 million in inflows, closely followed by Fidelity's ETF with $324 million. Ethereum funds also saw substantial investment, with $383.1 million in inflows, including $300.9 million for the ETHA ETF. This surge in investment highlights the growing acceptance of crypto assets within the traditional financial sector, as institutional investors increasingly view digital currencies as a strategic reserve rather than a speculative asset.

The convergence of traditional finance and crypto is evident in the performance of BlackRock's Bitcoin ETF, which now generates more revenue than its S&P 500 ETF. This shift is further supported by corporate treasuries accumulating Bitcoin, blurring the lines between speculative assets and strategic reserves. The trend is not limited to the U.S., as companies in regions like Japan and France are also adopting Bitcoin as part of their treasury strategies.

Analysts predict that this trend will continue, with Bitcoin potentially reaching $200,000 by the end of 2025, according to Standard Chartered. Bitwise anticipates that Bitcoin could join the traditional "safe-haven assets" curve, reflecting the growing institutional confidence in digital currencies. The U.S. Congress is also taking steps to clarify the regulatory framework for crypto assets, with the launch of "Crypto Week" and the introduction of the GENIUS Act, which aims to define the role of stablecoins.

Institutional investors are anticipating regulatory easing, which is expected to strengthen their exposure to crypto assets. Vincent Liu of Kronos Research notes that the return to macroeconomic calm and the rise of institutional investors are reviving interest in Bitcoin. This reflects growing confidence in BTC as a regulated and long-term asset, much like gold. The mechanism driving this trend includes scarcity, institutional demand, and political and monetary effects, suggesting that this is not just a temporary frenzy but a profound change in the role of crypto in global portfolios.