Fidelity & BlackRock Fuel $1B Bitcoin ETF Frenzy—Wall Street Finally Wakes Up

Wall Street's latecomers are piling into crypto—with institutional heavyweights Fidelity and BlackRock leading a $1 billion stampede into Bitcoin ETFs. The suits finally figured out digital gold? Cue the champagne (and the inevitable correction).

Why now? The herd mentality strikes again. After years of dismissing Bitcoin as 'rat poison,' traditional finance is now scrambling for exposure. FOMO meets AUM.

The irony? This surge comes just as retail traders rotate into altcoins—leaving institutions to buy the top. Classic.

One cynical take: When BlackRock’s ETF inflows hit record highs, it’s time to check your exit strategy. The smart money is rarely first, but always loud.

TLDR

• US spot Bitcoin ETFs recorded over $1 billion in net inflows on Wednesday and Thursday combined.
• The rebound followed a brief outflow of $342.2 million on Tuesday, breaking a positive streak.
• Fidelity’s FBTC led inflows on both days, adding $184 million and $237.1 million, respectively.
• BlackRock’s IBIT experienced two days of zero flows but returned strong on Thursday, with $224.5 million in inflows.
• Bitcoin ETF trading volume reached $5.3 billion on Thursday, with IBIT alone contributing $4.1 billion.

Bitcoin ETFs in the U.S. market rebounded sharply this week, recording $1.01 billion in net inflows over two days. This followed a temporary outflow of $342.2 million on Tuesday that briefly disrupted recent momentum. The rapid recovery restored confidence among market participants and pushed total net inflows NEAR the $50 billion mark.

Farside Investors reported that Wednesday saw $407.8 million in net inflows, followed by $601.8 million on Thursday. The rise in inflows brought cumulative volumes close to June’s positive trend. The renewed demand for Bitcoin ETFs also reflected broader sentiment toward digital asset investment vehicles.

Daily trading volume for bitcoin ETFs reached $5.3 billion on Thursday, the highest since May. That day, BlackRock’s IBIT fund alone contributed $4.1 billion in trading volume. These numbers underline the growing role of Bitcoin ETFs in institutional and retail portfolios.

Fidelity FBTC Leads Bitcoin ETF Inflows

Fidelity’s FBTC ETF recorded the highest inflows on both days, adding $184 million on Wednesday and $237.1 million on Thursday. The fund has steadily grown its share among Bitcoin ETFs, drawing consistent attention from investors seeking reliable exposure. Its strong performance continues to strengthen its position in the competitive ETF landscape.

This performance followed a broader June trend that saw Bitcoin ETFs collect $4.7 billion over 15 consecutive trading days. FBTC, along with BlackRock’s IBIT, has become one of the primary drivers of that surge. Its ability to maintain daily inflows reflects investor trust in its structure and management.

FBTC’s back-to-back gains demonstrate that demand for Bitcoin ETFs remains high despite short-term volatility. The fund’s recent strength comes as other products momentarily paused inflows. Market analysts expect FBTC to maintain momentum if broader crypto Optimism continues.

BlackRock’s IBIT Rebounds After Short Pause

BlackRock’s IBIT, the largest Bitcoin ETF by assets, recorded no inflows for two days before adding $224.5 million on Thursday. These two zero-inflow days marked its first pause since April but were quickly offset by Thursday’s volume. IBIT now manages $73.6 billion in assets under management.

IBIT has emerged as BlackRock’s third-highest revenue-generating ETF out of 1,197 products. Bloomberg analysts said it is just $9 billion away from becoming BlackRock’s top revenue ETF. This milestone highlights IBIT’s dominant position among all Bitcoin ETFs.

The nearly $75bil iShares Bitcoin ETF has only one month of outflows since Jan 2024 launch…

Now generates more fee revenue for BlackRock than its largest ETF, the iShares S&P 500 ETF.

Simply a machine.

I offer a few thoughts here.

via @isabelletanleehttps://t.co/uDv6eiVb4b pic.twitter.com/pPwMQbfplW

— Nate Geraci (@NateGeraci) July 3, 2025

IBIT also captured 81% of June’s Bitcoin ETF inflows, showing its stronghold on investor preference. As more institutions adopt Bitcoin ETFs, IBIT’s role continues to grow. IBIT’s trading activity remains a key barometer for crypto fund performance.

Altcoin ETFs Await SEC Approval

Analysts have increased the likelihood of SEC approval for Solana, XRP, and Litecoin spot ETFs to 95% this year. They also forecast a crypto index ETF tracking multiple assets could receive approval in the coming days. Expectations remain strong for additional altcoin ETF approvals by year-end.

Tokens such as Dogecoin and Cardano now carry a 90% approval probability for upcoming spot ETFs. However, analysts rate Sui and Tron lower, with 60% and 50% odds, respectively.