Institutional investors are increasingly turning to cryptocurrency exchange-traded funds (ETFs), with Bitcoin and Ethereum emerging as the most popular choices. The latest inflows into U.S. Bitcoin ETFs reflect a sharp rise in institutional interest, fueled by regulatory developments and growing market confidence. BlackRock’s IBIT, the largest Bitcoin ETF, accounted for 77% of total inflows, receiving $189 million in a single day, contributing to $247 million in inflows for the sector. At the same time, Ethereum ETFs attracted $327 million in inflows, underscoring the growing demand for both leading cryptocurrencies [2].
This trend is not limited to the U.S. but is being seen globally, with institutional portfolios across the world incorporating crypto assets. BlackRock’s Bitcoin ETF has seen assets under management surpass $80 billion, a testament to its growing appeal among large investors [7]. The surge in demand has also had a direct effect on Bitcoin’s price, which reached as high as $122,000 amid renewed buying from corporate treasuries and institutional players [1].
The regulatory landscape has played a crucial role in enabling this shift. A recent executive order, attributed to former U.S. President Donald Trump, explored the potential for allowing crypto investments in retirement accounts, generating optimism in the market [4]. Meanwhile, several firms are awaiting approval for spot Ethereum ETF applications from the U.S. Securities and Exchange Commission (SEC), with a decision expected between October 18 and 20 [3]. While uncertainty remains over the outcome, the momentum behind crypto ETFs continues to build.
Despite Ethereum’s recent rally and substantial inflows, some experts, including Peter Schiff, maintain a strong preference for Bitcoin. Schiff has argued that Bitcoin’s status as the first and most established cryptocurrency remains unchallenged, particularly with the recent approval of U.S. Bitcoin ETFs and strong demand from corporate treasuries [9]. This sentiment reinforces Bitcoin’s leading role in the institutional crypto space, even as Ethereum gains attention.
In response to the rising institutional interest, hedge fund activity is also on the upswing. Syz Capital, for example, has reopened its BTC Alpha Fund, which focuses on Bitcoin exposure [8]. The move signals broader confidence in the asset class and suggests that more institutional players may enter the market in the near future.
As the market continues to evolve, the demand for crypto ETFs is expected to fuel further price growth and greater adoption. The convergence of regulatory clarity, institutional participation, and market optimism is reshaping the digital asset landscape and strengthening the role of crypto in institutional portfolios.
Sources:
[1] Institutional demand spurs bitcoin (https://www.linkedin.com/news/story/institutional-demand-spurs-bitcoin-7583802/)
[2] BlackRock’s IBIT Leads 77 of Bitcoin ETF Inflows Amid … (https://www.ainvest.com/news/bitcoin-news-today-blackrock-ibit-leads-77-bitcoin-etf-inflows-189m-surge-2508/)
[3] Can Ripple (XRP) Make a Run for Its Highs by October? … (https://www.tipranks.com/news/can-ripple-xrp-make-a-run-for-its-highs-by-october-heres-what-this-top-investor-expects)
[4] Despite Trump’s EO for 401(k) to invest in crypto … (https://www.mitrade.com/au/insights/news/live-news/article-3-1026566-20250810)
[7] The 2025 Crypto Bull Run Is Gearing Up for Something BIG (https://ritzherald.com/the-2025-crypto-bull-run-is-gearing-up-for-something-big/)
[8] Opalesque: Hedge Fund News – Alternative Investments … (https://www.opalesque.com/)
[9] Despite Ethereum’s Rally Peter Schiff Reaffirms Bitcoin … (https://coincentral.com/despite-ethereums-rally-peter-schiff-reaffirms-bitcoin-preference/)
