Bitcoin ETFs Post Second-Biggest Day Ever: Why It Matters

U.S. spot Bitcoin exchange-traded funds pulled in over $1.17 billion on Thursday, notching their second-highest day of inflows ever as institutional capital flooded into digital assets.

The massive inflows to Bitcoin ETFs were led by BlackRock’s IBIT with $448.5 million, followed by Fidelity’s FBTC at $324.3 million and ARK’s ARKB with $268.7 million, according to Farside Investors data.

Even with $40.2 million in outflows from Grayscale’s GBTC, total net flows turned sharply positive.

The influx comes as Bitcoin (BTC) hit a new all-time high of $118,000 Friday morning, pushing total net inflows across all U.S. Bitcoin ETFs above $50 billion since their launch last January.

Ethereum ETFs locked in $383 million in net inflows on Thursday, their second-highest day on record, dominated by BlackRock’s ETHA with $300.9 million in inflows, per Farside Investors data.

The biggest day for spot Bitcoin ETFs was on November 7, with $1.374 billion in inflows following Trump’s election victory.

“The recent surge in inflows into Bitcoin ETFs signals a significant shift in how large capital allocators are engaging with the digital asset space,” Charmaine Tam, head of OTC sales and trading at Hex Trust, told Decrypt. “It reflects a disciplined approach to capital allocation into custody-grade, regulated vehicles.”

Tam said the institutional embrace gained momentum following the SEC’s July 1st guidance on crypto ETF disclosure standards, providing the “regulatory clarity” that risk-averse allocators demanded.

“Looking ahead, this momentum could unlock substantial incremental institutional allocation potential, estimated to be in the range of $8-$10 billion in the second half of 2025,” she said.

Bitcoin’s new all-time high

Bitcoin is currently trading at $117,899 according to CoinGecko data, having surged to a new all-time high of $118,667 Friday morning.

“What stands out is that this buying pressure is occurring even as BTC trades in a tight range near all-time highs, suggesting that the bid is less about chasing momentum and more about strategic allocation,” Chris Colman, Head of Trading, APAC at Gemini, told Decrypt.

Colman noted that “spot ETFs now manage close to $150 billion in assets, and because they require the actual purchase of Bitcoin, these inflows represent real demand—not just synthetic exposure.”

“Macro conditions are supporting the bid,” he said, with softer yields and a stable Fed outlook encouraging rotation into “alternatives with asymmetric upside.”

The supply-demand imbalance triggered massive forced selling, with short sellers getting crushed as Bitcoin surged to new highs.

Over $1.14 billion in crypto short positions were liquidated in 24 hours, with Bitcoin shorts bearing the brunt at $679.8 million as the asset demolished resistance levels, per CoinGlass data.

The combination of institutional ETF flows, corporate treasury adoption, and retail FOMO has created what Tam describes as “float-adjusted scarcity” premium.

Both institutional and retail investors are “bullish on a short term interest rate cut, based on the latest developments around the Fed chair,” Ganesh Mahidhar, investment professional at Further Ventures, told Decrypt. “This is also being supported by more BTC strategies being announced,” he added.

President Donald Trump ratcheted up pressure on Fed Chair Jerome Powell Thursday, demanding rate cuts in a Truth Social post: “”Too Late” DEMEANS THE GREAT CREDIT OF THE USA… LOWER THE RATE!!!”

Users of on-chain prediction market Myriad are split, with 43.1% predicting the Fed will cut rates in July, while 35.7% of predictors expect no change.

The administration also opened a new front against Powell, with Office of Management and Budget Director Russell Vought accusing the Fed chair of “grossly mismanaging” the central bank and citing a “pricey and ostentatious” $2.5 billion headquarters renovation, roughly $700 million over budget.