Surge in Spot Bitcoin ETFs and the Rise of the Crypto Market
Recent developments in the cryptocurrency space indicate a vibrant market, with spot Bitcoin exchange-traded funds (ETFs) achieving notable milestones. Collectively, these funds now hold 7% of the total Bitcoin supply, representing 1,472,757 BTC valued at approximately US$173.16 billion (AU$266.17 billion).
The US is leading the charge in the spot Bitcoin ETF market. On Friday, the US funds attracted US$363.5 million (AU$558.64 million) in inflows, marking the twelfth consecutive day of positive net inflows. BlackRock’s IBIT has proven to be a significant player in this surge. This ETF not only holds 3.4% of all Bitcoin, which translates to around 731,515 BTC valued at roughly US$86.7 billion (AU$133.2 billion), but it is also the fastest-growing ETF in history.
Out of the numerous ETFs, IBIT’s success overshadows others, as it alone accounted for US$496.8 million (AU$763.54 million) of the inflows on Friday. In contrast, some other ETFs, such as Fidelity’s FBTC, Bitwise’s BITB, VanEck’s HODL, Ark’s ARB, and Grayscale’s GBTC, experienced net outflows during the same period, except for Wisdom Tree’s BTCW which saw a minor gain with US$3.1 million (AU$4.76 million) in inflows.
An analysis of the data reveals that despite a plethora of options, IBIT remains the market leader, and since July 1, there have been no outflows across US Bitcoin ETFs. In total, over US$6 billion (AU$9.21 billion) has flowed into these funds during this time. Nate Geraci, president of Nova Dius Wealth, highlighted that in 2025, US$25 billion (AU$38.38 billion) has been poured into spot Bitcoin and Ethereum ETFs combined.
This positive trajectory isn’t limited to Bitcoin, as Ethereum ETFs have also experienced a remarkable week with US$2 billion (AU$3.07 billion) added between Monday and Friday. Ethereum made significant gains, surging 23% over the week, and currently trades at US$3,755 (AU$5,767). Bitcoin recently reached a new all-time high of US$123,091 (AU$189,066).
The resurgence in prices for both Bitcoin and Ethereum has seen the total market capitalisation for the cryptocurrency sector nearing US$4 trillion (AU$6.1 trillion), driven not only by Bitcoin and Ethereum but also by alternative cryptocurrencies like XRP, which recently achieved its own all-time high.
As the crypto landscape evolves, the positive momentum in Bitcoin and Ethereum ETF inflows raises questions about an impending "altseason," where other cryptocurrencies may also experience significant growth. Overall, this period of expansion points to increasing institutional interest and optimism within the cryptocurrency arena.
In conclusion, the combined strength of Bitcoin and Ethereum ETFs, coupled with unprecedented overall market gains, suggests a potentially bullish future for cryptocurrencies. Investors and market watchers will be keenly observing the forthcoming trends as the market continues its upward trajectory.
