Rapid Growth of Bitcoin Adoption Compared to Various Technologies Identified by BlackRock
In a significant development for the Bitcoin market, data provided by K33 Research reveals that BTC-ETF issuers and publicly traded companies collectively acquired 859,454 BTC in 2024. This represents a staggering 4.3% of Bitcoin's circulating supply and eight years' worth of mining output.
The surge in adoption and investment in Bitcoin ETFs has been dramatic, with cumulative inflows into U.S. spot Bitcoin ETFs surpassing $54.75 billion by mid-2025. BlackRock’s iShares Bitcoin Trust (IBIT) leads this growth, managing around $80 billion in assets under management and contributing over $1.3 billion in inflows in just a couple of days in July 2025.
This massive institutional investment is driving a structural shift in the market. ETFs now account for about 85% of Bitcoin’s price volatility, showing their dominant influence. Institutional investors also employ volatility hedging, which has compressed Bitcoin’s historical spot volatility by roughly 40% year-to-date, indicating a move toward more sophisticated risk management.
Looking ahead, projections for adoption and continued investment by 2025 year-end suggest that ETF inflows will keep rising, supporting Bitcoin price growth to around $135,000 in a base case, possibly reaching $199,000 in a bullish scenario. This growth is largely fueled by ETF demand and institutional participation, including companies holding Bitcoin on balance sheets.
Institutional interest is expected to deepen, with over 50 publicly traded companies now holding Bitcoin and allocating billions as an inflation hedge. The rapid growth and regulatory clarity propelling Bitcoin ETFs mark a significant mainstream integration of Bitcoin into traditional finance.
Moreover, by 2025, investment advisors could potentially increase their positions in digital gold and Ethereum-based ETFs by more than 50%. The increased interest in Bitcoin ETFs could potentially lead to increased demand for Bitcoin, further fuelling its growth.
In summary, by 2025, the Bitcoin ETF market is projected to continue expanding with tens of billions in inflows, further cementing institutional adoption and investment. This trend is likely to be a key driver for both Bitcoin’s price appreciation and its evolving market structure. Bitcoin exchange-traded funds (ETFs) are considered a critical milestone for both the crypto and traditional markets.
Bitcoin exchange-traded funds (ETFs) could potentially lead to increased demand for not only Bitcoin, but also Ethereum, as investment advisors are projected to increase their positions in digital gold and Ethereum-based ETFs by more than 50% by 2025. This increasing institutional interest in both Bitcoin and Ethereum underscores the significant impact of technology, particularly digital assets, on traditional finance.
