Record High for Bitcoin ETFs in 2021: Interpreting the Significance
In 2025, a significant surge in corporate interest toward Bitcoin Exchange-Traded Funds (ETFs) was recorded, reaching an unprecedented peak. This surge was prominently driven by BlackRock's launch of its IBIT product, which saw no outflows for an impressive 30 consecutive days, attracting net inflows of $9 billion. As a result, IBIT catapulted from the 47th spot to the top five most-watched ETFs in the U.S., surpassing the gold ETF GLD, boasting $6.96 billion in assets, compared to GLD's $6.5 billion.
The escalating interest in BlackRock's ETF coincided with Bitcoin testing the $112,000 level. This unusual activity was noted by Eric Balchunas, an ETF analyst at Bloomberg, who reported double the average daily volumes across all BTC ETFs. Crypto index fund managers at Bitwise expect this interest to persist, with their "2025/2026 Bitcoin Corporate Inflows Forecast" report predicting net inflows of $120 billion in 2025 and a staggering $300 billion in 2026.
In 2024, the demand for Bitcoin remained relatively subdued, despite the records broken, with large investors like Morgan Stanley and Goldman Sachs awaiting their regulatory clearances. However, as ETF performance improves, this dynamic could change. Bitwise strategists propose three different scenarios, projecting that governments converting even a minuscule percentage of their gold reserves to Bitcoin could significantly boost institutional inflows, potentially making Bitcoin the new gold standard for institutional investors within the next few years.
According to Bitwise's estimates, Bitcoin ETFs could retain as much as 20% of the total Bitcoin supply by the end of 2026, reflecting growing involvement from asset managers, sovereign wealth funds, governments, and corporations. Other reports suggest slightly higher figures, with institutional inflows reaching up to $426.9 billion by 2026. Major institutional players in this space include BlackRock and Strategy (formerly MicroStrategy), alongside public institutions and governments increasingly investing in Bitcoin ETFs.
In summary, the uptrend in Bitcoin ETFs is strong, and this growth could pave the way for Bitcoin to replace gold as the preferred institutional investment in the near future. Institutions are expected to retain a substantial portion of the total Bitcoin supply, potentially controling around 20% of it by the end of 2026.
Technology played a pivotal role in driving the surge of interest in Bitcoin Finance, as the launch of BlackRock's IBIT product, a Bitcoin ETF, attracted significant investment, prompting discussions about Bitcoin potentially becoming the new gold standard for institutional investors. As the demand for Bitcoin ETFs grows, major players like BlackRock and Strategy are expected to retain a substantial portion of the total Bitcoin supply, potentially controlling around 20% of it by the end of 2026.
