Key Points:

• Bitcoin recently hit a new record above $122,000, driven by strong inflows into spot Bitcoin ETFs.
• Bitcoin ETFs saw a record $1.20 billion in inflows on Thursday, the largest single-day haul of 2025.
• BlackRock’s IBIT ETF is rapidly approaching $100 billion in AUM, highlighting massive institutional interest in Bitcoin ETFs.

Bitcoin’s performance has been impressive as of late. According to CoinGecko data, prices briefly broke above $122,000 on Monday, before pulling back slightly.

This impressive jump came amid massive inflows into spot Bitcoin ETFs and the ongoing rise in institutional interest. So far, traders watching the main crypto market are also keeping an eye out for the Bitcoin ETF market.

Here are the aspects of the ongoing trend to keep in mind.

The Growth of Bitcoin ETFs

Recent data shows that the Bitcoin ETFs have grown massively so far. On Thursday last week alone, these exchange-traded funds raked in $1.20 billion in inflows, which marked the biggest single-day haul of the year.

Massive Bitcoin ETf inflows | Source: Farside Investors

According to recent insights from QCP Capital in further reporting, institutional flows into spot BTC ETFs topped $2 billion last week. These numbers strongly show that major players are more and more betting on further upside for Bitcoin.

Moreover, the popularity of Bitcoin ETFs is also clear as far as the derivatives markets are concerned. Open interest on futures contracts now stands at more than $43 billion.

In addition to this, funding rates on perpetual contracts are climbing as well, which means that traders are betting on further price increases despite the ongoing correction.

Institutional Drivers and Macroeconomic Tailwinds

The surge in Bitcoin’s price is not merely speculative. It is massively supported by major institutional buying, with trading desks and crypto exchanges reporting fresh corporate orders.

Some firms reportedly buy blocks of 100 BTC or more at a time, while others like MicroStrategy are employing massive dollar-cost averaging strategies to gradually build their Bitcoin positions.

Institutions buying Bitcoin ETFs | Source: Twitter

Even smaller funds are increasing their positions, and pushing the collective demand higher and higher.

So far, macroeconomic tailwinds are positive for Bitcoin as well, with the expectation of U.S. interest rate cuts in H2 creating a “risk-on” sentiment for the market.

Furthermore, the US political space is becoming more and more supportive of cryptocurrencies, especially under the current administration. For example, U.S. President Donald Trump has voiced strong support for clearer crypto regulations since the November elections.

On Monday this week even, the U.S. House of Representatives began debating a package of crypto bills aimed at providing better certainty for firms. If successful, these efforts could add further credibility to the crypto space and encourage more traditional capital to flow into Bitcoin ETFs.

BlackRock’s IBIT Leads the Charge

One major example of the ongoing Bitcoin ETF interest with Bitcoin ETFs is BlackRock’s iShares Bitcoin Trust ETF (IBIT).

Bloomberg analyst Eric Balchunas recently predicted that the IBIT could clinch $100 billion in assets under management (AUM) before the end of July. This prediction comes despite IBIT only recently hitting the $80 billion mark.

Growth predictions for the Bitcoin ETFs | Source: Twitter

Balchunas’s revised timeline is based on a surge in ETF inflows. On July 11, the BlackRock Bitcoin ETF pulled in nearly $1 billion in inflows according to Farside Investors data.

This rapid growth has made IBIT the fastest ETF in history to reach $80 billion in AUM, after achieving this milestone in just 374 days. This stands as five times faster than the previous record holder, the Vanguard S&P 500 ETF (VOO).

As of July 14, IBIT’s AUM had grown to approximately $88 billion, making it the 20th biggest ETF in the U.S. and BlackRock’s most profitable ETF in under two years. So far, if the relentless institutional buying through Bitcoin ETFs continues, new all-time highs are likely, and $125,000 could soon be within reach.

However, if ETF purchases slow down or highly leveraged long positions are squeezed, a 10-20% correction would not be surprising.