Bitcoin ETFs Explode: Second-Biggest Trading Day in History Signals Institutional Frenzy
Wall Street's crypto love affair hits new heights as Bitcoin ETF volumes go vertical.
Mainstream Money Floodgates Open
The numbers don't lie—this wasn't a blip. When traditional finance's shiny new toys start posting record-breaking flows, even the most cynical traders pay attention.
Why the Smart Money Can't Look Away
Forget 'digital gold'—these flows scream institutional FOMO. Whether it's hedge funds covering shorts or pension funds dipping a toe, the ETF wrapper makes crypto palatable for suits who'd never touch a private key.
The Ironic Twist
Funny how the same firms that mocked crypto for years now collect fat fees for providing... exposure to crypto. The more things change, the more Wall Street finds a way to monetize the revolution.
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.
