Bitcoin and Ethereum Spot ETFs Hit Record Inflows as Institutional Confidence Grows

The cryptocurrency market is witnessing a historic surge in institutional investment, with U.S. spot Bitcoin exchange-traded funds (ETFs)

U.S. spot bitcoin exchange-traded funds (ETFs) hit a record-high $109 billion in assets under management (AUM) by late April, according to data from The Block.

The milestone comes as the cryptocurrency market experiences a historic surge in institutional investment.

Since their launch in early 2024, bitcoin ETFs have reached an all-time high with over $41 billion in inflows, according to X. As of May 8, investors channeled new capital into these funds, pushing the total to this record-breaking figure.

The largest spot bitcoin ETF, iShares Bitcoin Trust (IBIT) by BlackRock, has attracted $6.96 billion in year-to-date inflows, outpacing even the world’s largest gold ETF, SPDR Gold Trust (GLD), which saw $6.5 billion in inflows. This performance highlights institutional investors’ preference for bitcoin despite its modest 3.8% price gain compared to gold’s 29% surge this year.

This record-high AUM for bitcoin ETFs comes amid persistent rumors of an upcoming approval for an ETF linked to the DeFi sector, further expanding the possibilities for institutional crypto engagement.

The record-high AUM for bitcoin ETFs comes amid persistent rumors of an upcoming approval for an ETF linked to the DeFi sector, expanding the possibilities for institutional crypto engagement.

While bitcoin ETFs continue to grab headlines, spot ethereum ETFs are also experiencing notable success.

In early May, ethereum ETFs saw significant net inflows, recovering from an eight-week streak of outflows. This marks the first positive weekly inflow since February, reflecting a broader cryptocurrency market rally and signaling renewed confidence from investors.

As of May 8, the total AUM for U.S.-listed ethereum ETFs reached $4.3 billion, a fraction of the $109 billion held by bitcoin ETFs. However, this figure is still substantial and signifies the growing appeal of ethereum among institutional investors.

Among the most popular choices is BlackRock’s Ethereum ETF (ETHA), which has attracted a large portion of the capital, contributing to the fund’s growing AUM, which is now in the billions.

Despite earlier challenges, including March’s significant outflows, the recent surge highlights ethereum’s appeal as an institutional investment, fueled by its robust ecosystem and Pectra upgrades.

While bitcoin ETFs still dwarf their ethereum counterparts in size, the recent performance of ethereum ETFs signals a shift as institutions increasingly recognize ethereum’s potential as a core holding in the crypto market.

Rising Institutional Trust Fuels ETF Inflows

Bitcoin, with its established narrative as digital gold, continues to dominate, leading to greater interest and, consequently, larger inflows into bitcoin ETFs compared to ethereum.

The record inflows into both bitcoin and ethereum ETFs highlight a structural shift in the financial landscape, pushing institutions to increasingly include cryptocurrencies in their portfolio strategies.

Macroeconomic factors, such as persistent inflation, a weakening U.S. dollar, and expectations of renewed quantitative easing by the Federal Reserve, are also attributed to this trend.

As reported by BTC Markets' Rachael Lucas, these inflows reflect a "maturing role" for bitcoin and ether in diversified portfolios.

Moreover, global adoption is steadily progressing, with countries like the UAE, Singapore, and Hong Kong launching their spot bitcoin and ethereum ETFs, further legitimizing cryptocurrencies as an asset class despite short-term volatility, such as bitcoin's 12% price drop in Q1 2025. Ultimately, the sustained inflows attest to institutional optimism.