Bitcoin ETF Inflows Explode to $3.9B as Wall Street Rotates From Dollar to BTC
BlackRock's IBIT Drives $340M Daily Surge; BTC Price Lifts to $108K Amid Fed Shake-Up and DXY Breakdown | That's TradingNEWS
Wall Street Accelerates Into Bitcoin ETFs as IBIT, FBTC Dominate $3.9B Inflow Surge
Institutional Momentum Builds as Spot Bitcoin ETFs Record Twelve Straight Days of Inflows
Wall Street is moving aggressively into spot Bitcoin (BTC-USD) ETFs, with the sector marking a staggering 12-day net inflow streak totaling $3.9 billion. This wave of capital has pushed total U.S. spot Bitcoin ETF inflows near $50 billion since January 2024, as investors lean into Bitcoin amid mounting pressure on the U.S. dollar and speculation around a September Fed pivot.
Wednesday alone saw nearly $548 million in net inflows, with BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) claiming a dominant $340.3 million, followed by Fidelity’s FBTC at $115.2 million. Ark/21Shares' ARKB pulled in $70.2 million, Bitwise’s BITB secured $12.9 million, and VanEck’s HODL trailed with $9.1 million. Other ETFs posted zero flows. IBIT alone has now absorbed over $3.3 billion, accounting for 86% of the current 12-day surge, confirming its overwhelming grip on institutional allocations.
Daily Inflows Double Amid Dollar Weakness and Fed Uncertainty
The pace of ETF inflows has accelerated significantly. While the initial 10-day average hovered around $276 million/day, the past two sessions surged past $500 million daily, nearly doubling the trend. Analysts attribute this spike to growing confidence in Bitcoin as a hedge against both monetary policy instability and fiat depreciation.
The U.S. Dollar Index (DXY) dropped 1.23% after reports surfaced that former President Donald Trump may replace Fed Chair Jerome Powell in September. As rate cut expectations for Q3 intensify—CME data shows 69% probability of a 25bps cut—appetite for non-yielding assets like Bitcoin has spiked.
Bitcoin ETF AUM Surges Past $125 Billion as Price Reclaims $108K
Fueled by ETF demand and macro tailwinds, Bitcoin’s price climbed back above $108,000, up from a Sunday low near $98,000. According to Glassnode, ETFs now hold 1.234 million BTC, increasing by over 9,722 BTC in just three days. This equates to over $1.04 billion in net inflows since Monday—an aggressive accumulation pace unseen since March.
Total assets under management (AUM) in U.S. spot Bitcoin ETFs now exceed $125 billion, with IBIT alone representing a sizable portion of this capital pile. This puts BlackRock on pace to outpace traditional ETF leaders such as SPLG in YTD flows, signaling a structural capital rotation from equities to crypto-backed funds.
Bitcoin ETF Products Outpacing Traditional Benchmarks Like SPLG and SPY
IBIT’s year-to-date inflows have reportedly eclipsed SPDR Portfolio S&P 500 ETF (NYSEARCA:SPLG), marking a turning point in institutional portfolio construction. For decades, SPY and SPLG were passive cornerstones for conservative allocations. But with crypto now offering a regulated ETF wrapper, managers are rebalancing toward digital assets.
The rise of Bitcoin ETFs comes despite minimal brokerage distribution. Coinbase’s John D’Agostino emphasized the organic nature of these flows: "This isn’t being driven by advisors—this is raw, bottom-up institutional interest."
Trump’s Fed Shake-Up and Dollar Breakdown Add Fire to Bitcoin Narrative
On June 25, inflows exceeded $500 million just hours after Trump’s rumored plan to remove Powell leaked. The DXY sank to its lowest since April 2022, breaking support around 97.50. Analysts at Linq Energy warn that if DXY collapses below this zone, structural weakness in the greenback could fuel further institutional rotation into Bitcoin and commodities.
Sven Henrich’s macro model calls this a "do-or-die" moment for the dollar. A prolonged DXY drop toward the low 90s could accelerate Bitcoin demand in both ETF and OTC markets. Lark Davis described Wall Street’s BTC appetite as "vacuum-like," forecasting a liquidity grab that could push BTC toward $150,000 by 2025.
ETF Flows Drive BTC Price Recovery More Than Corporate Treasury Buys
Research from K33 indicates that ETF flows have a more immediate and lasting impact on BTC-USD than corporate treasury activity. While firms like MicroStrategy continue buying, it’s the daily ETF demand from retail and institutional buyers that’s proving price-determinant.
Timothy Misir of BRN Research highlights that the decline in M2 money supply growth and World Bank’s U.S. growth forecast cut—from 2.3% to 1.4% for 2025—add macro strength to the Bitcoin case. "Bitcoin is maturing into a portfolio core, not just a speculative asset," Misir said. "With Treasury and equity correlation rising, BTC is reclaiming its non-correlated appeal."
Ethereum ETFs Gain Traction But Trail Behind Bitcoin’s Momentum
While Bitcoin dominates, Ethereum is also gaining institutional exposure. On Wednesday, U.S. spot Ethereum ETFs logged $60.4 million in net inflows, with BlackRock’s ETHA leading at $55.2 million. Their three-day streak totaled $232.4 million, bringing total Ethereum ETF inflows to $4.2 billion since July 2024. However, the capital differential between Bitcoin and Ethereum remains stark, reinforcing Bitcoin’s primary role as digital macro hedge.
Buy, Hold, or Sell? Bitcoin ETF Flow Data Points to Sustained Bullish Momentum
The combination of weakening dollar dynamics, institutional inflows nearing $50 billion, and a strong price recovery back to $108K+ paints a decisively bullish picture. BlackRock’s IBIT (NASDAQ:IBIT) continues to dominate flows, but Fidelity’s FBTC, ARKB, BITB, and HODL are also drawing meaningful traction.
Unless ETF flows reverse or DXY finds a strong technical bounce, Bitcoin remains structurally supported. Every major macro signal—from rate cut bets to fiscal slippage—now favors BTC accumulation. For institutional and retail investors alike, the current price zone still offers asymmetric upside.
Verdict: Buy. The data confirms Bitcoin ETF demand remains robust, macro headwinds for the dollar persist, and no structural outflows have yet emerged from major funds. Until that changes, BTC-USD continues to climb the wall of worry—on institutional rails.
Price at publish: $107,445
