Bitcoin ETFs Smash Records: $25B Floods In as BlackRock Holds Steady

Wall Street’s crypto love affair hits new heights—ETF volumes surge to yearly highs while the big players dig in. No exits, no regrets.

Mainstream money piles into Bitcoin funds like there’s no tomorrow (and for some traditional assets, there might not be). BlackRock’s rock-solid stance proves even whales get FOMO.

Another day, another dollar—or in this case, twenty-five billion of them. The suits are finally learning: you can’t short a revolution.

Bitcoin price surge drives institutional interest in ETFs

BlackRock’s rise in ETF flows came right as Bitcoin hit $112,000, drawing in more institutional cash. Eric Balchunas, an ETF analyst at Bloomberg, posted on Friday that, “All the BTC ETFs are elevated, most are gonna see 2x their daily average flows incoming.”

Bitwise, which runs crypto index funds, expects even more activity ahead. In their recent report Forecasting Institutional Flows to bitcoin in 2025/2026, they project $120 billion in inflows this year and $300 billion more in 2026.

They pointed out that $36.2 billion already flowed into spot Bitcoin ETFs in 2024, outpacing how fast the gold ETF GLD gained traction when it first launched.

Bitwise reported that Bitcoin ETFs hit $125 billion in assets under management within 12 months, which was 20 times faster than GLD. If things keep moving at this pace, Bitwise believes Bitcoin could attract $100 billion a year by 2027, easily pushing it far beyond gold as the go-to asset for institutions.

Despite all that activity, around $35 billion in Bitcoin demand stayed on the sidelines in 2024. Morgan Stanley and Goldman Sachs, who manage a combined $60 trillion in client assets, held back because of internal compliance rules.

Those companies want to see more performance history from the ETFs before diving in, but the growing adoption of BTC funds is expected to change that.

Bitwise strategists Juan Leon, Guillaume Girard, and Will Owens modeled three scenarios. The bear case estimates inflows of over $150 billion, assuming governments shift 1% of their gold holdings to Bitcoin, US states build 10% BTC reserves, wealth platforms allocate 0.1%, and public companies MOVE in with around $58.9 billion.

Bitwise says the base case brings that total to $600 billion, assuming 5% gold-to-BTC reallocation by countries, 30% state-level adoption, 0.5% wealth platform allocation, and a doubling of public company holdings to $117.8 billion.

This, with Bitwise’s forecasts of $120 billion this year and $300 billion next year, with nearly 20.32% of Bitcoin’s supply being absorbed. Governments moving 10% of their gold reserves to Bitcoin could unleash $323.4 billion, while US state adoption grows to 70% for another $45.8 billion.

Wealth platforms could jump to a 1% allocation, or $600 billion, and public companies could ramp up to $235.6 billion. In total, $426.9 billion could pour into Bitcoin ETFs, representing 4,269,000 BTC, if that scenario plays out.

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