Surging Bitcoin ETF Demand Signals Renewed Institutional Confidence
BlackRock’s IBIT and Fidelity’s FBTC Dominate Inflows
Spot Bitcoin ETFs are once again in the spotlight, with cumulative net inflows of $297.4 million recorded on July 23, 2025, marking one of the most aggressive single-day institutional accumulations since early May. The lion’s share of this surge was led by BlackRock’s iShares Bitcoin Trust (IBIT), which posted a dominant $182.1 million net inflow, underscoring BlackRock’s role as the primary institutional vehicle for Bitcoin exposure in regulated markets. Fidelity’s FBTC followed with $84.9 million, reinforcing the two firms’ duopoly on Bitcoin ETF capital flows.
This continued appetite comes even as Grayscale’s GBTC continues to bleed assets, with another –$32.4 million in outflows on the same day. While outflows from GBTC have slowed from March’s triple-digit pace, the product’s elevated fee structure and lack of cost efficiency continue to deter new capital allocations. The seven-day rolling net outflow for GBTC now totals –$187.2 million, compared to IBIT’s +$598.3 million and FBTC’s +$318.6 million over the same period.
Total 7-Day Net ETF Flow Exceeds $843 Million
The total 7-day rolling net inflow for all U.S. spot Bitcoin ETFs stands at +$843.7 million, a dramatic reversal from the stagnation observed in early July when Bitcoin struggled to hold the $59,000 mark. This renewed demand appears to be driven by a combination of factors: declining U.S. Treasury yields, growing speculation of a Fed rate cut in September, and rising demand for digital asset exposure as a hedge against global currency debasement.
VanEck, Bitwise, and ARK See Moderate Flows
Beyond the top two players, ARKB (ARK 21Shares) added $37.2 million in new flows on July 23, while Bitwise’s BITB saw $16.8 million and VanEck’s HODL posted $3.7 million. These flows suggest that while scale remains concentrated in BlackRock and Fidelity, second-tier providers are still attracting tactical buyers — particularly from retail advisors and crypto-native institutions reallocating into lower-fee structures.
Cumulative Totals Point to Long-Term Commitment
Cumulatively, BlackRock’s IBIT is nearing $21 billion in total AUM, with FBTC crossing $14.6 billion, and both continue to gain traction among RIAs, hedge funds, and family offices. This scale creates a self-reinforcing cycle — deeper liquidity, tighter spreads, and more favorable institutional execution — further marginalizing legacy products like GBTC and reducing arbitrage mispricing.
Institutional Rotation Away From Grayscale Accelerates
Grayscale’s strategy to hold market share via ETF conversion has failed to stop the bleed. The firm has lost more than $17 billion in AUM since January 2024, with daily outflows now persistent though smaller in scale. In contrast, the newer entrants are seeing net-positive creation units almost daily, underscoring a structural rotation in how institutions seek exposure to Bitcoin: from closed-end vehicles to open, low-fee ETF wrappers.
Verdict: Bullish Accumulation Phase Confirmed – BUY
The data confirms a reacceleration of institutional inflows into spot Bitcoin ETFs, particularly into IBIT and FBTC, just as BTC reclaims the $64,000 level. With over $843 million in new ETF demand over 7 days, this marks a renewed accumulation phase and a bullish structural pivot heading into Q3 2025.
Despite lingering macro risks, including regulatory overhangs and miner capitulation, ETF flows remain one of the cleanest proxies for institutional conviction. The fact that this surge occurs alongside declining GBTC outflows and macro dovishness positions Bitcoin for a potential breakout — price targets above $68,000 are back in play if flows remain elevated through month-end.
This remains a BUY zone for Bitcoin exposure via spot ETFs — particularly IBIT and FBTC — with strong liquidity, net creation, and clear demand signaling long-term positioning, not speculative churn.
