$3.4B Floods Into Crypto ETFs—HODLers or Wall Street Sharks Driving the Rally?

Crypto ETFs just hauled in a staggering $3.4 billion—proof the ’digital gold rush’ is back or another case of institutional FOMO? Let’s break it down.

The whale watch: Are retail investors doubling down, or is this another playground for hedge funds to front-run Main Street? The volume screams ’smart money,’ but the crypto crowd never goes quietly.

Market irony: Same Wall Street suits who called Bitcoin a scam in 2018 are now quietly stuffing it into pension funds. Nothing boosts legitimacy like a 300-basis-point yield chase.

One thing’s clear—when the financialization of crypto accelerates, buckle up for volatility. And maybe grab some popcorn for the inevitable regulatory tantrum.

Bitcoin ETF analysis

BlackRock’s IBIT emerged as the standout performer, attracting a staggering $970.9 million, while other major ETFs like Fidelity’s FBTC and Grayscale’s GBTC faced outflows of $86.9 million and $42.7 million, respectively.

Interestingly, despite these outflows and its status as the most expensive option, Grayscale’s GBTC has out-earned all its competitors in terms of revenue.

According to ETF Store President Nate Geraci, GBTC raked in an implied $268 million — well above the combined $211 million generated by the remaining 11 spot Bitcoin ETFs.

Remarking on the same, Geraci noted,

“Nearly 16 months after spot BTC ETFs launched, GBTC still making more $$$ than all of the other ETFs combined…And it’s not even close.” 

Ethereum ETF update

Now, while Bitcoin ETFs have dominated headlines, spot Ethereum [ETH] ETFs are quietly gaining traction, registering $64.1 million in net inflows as per Farside Investors.

BlackRock’s ETHA led the pack with $67.5 million, whereas Bitwise’s ETHW was the only product to record outflows, shedding $3.4 million, and the rest remained flat.

What’s behind this?

The surge in ETF inflows across both Bitcoin and Ethereum appears to be fueled by a dual force: hedge funds seizing arbitrage opportunities and HODLers reinforcing long-term conviction.

Institutional players like Millennium Management and Point72 are actively deploying capital across various crypto ETFs, facilitating liquidity and underscoring a growing appetite for digital assets within traditional finance.

At the same time, seasoned crypto holders are maintaining their positions, adding a layer of stability that supports investor confidence.

Together, this convergence of short-term strategy and long-term belief is accelerating ETF demand and embedding crypto more firmly into institutional portfolios.

Bitcoin and Ethereum’s price action

Meanwhile, Bitcoin was trading at $94,985.44 after a 0.5% uptick in the last 24 hours, while Ethereum followed suit with a stronger 1.22% gain, reaching $1,830.28, according to CoinMarketCap.

Despite the positive price action, technical indicators paint a more nuanced picture.

Bitcoin’s Relative Strength Index (RSI) hovered around the 51 mark, signaling that while bullish momentum is present, it’s not yet dominant.

Conversely, Ethereum’s RSI stood lower at 43, indicating that bearish pressure continues to overshadow buying strength.

Source: Santiment

These mixed signals suggest that although institutional inflows and long-term holder confidence are providing a support base. 

The market has yet to establish a strong directional bias, leaving room for volatility in the days ahead.