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The cryptocurrency market witnessed a massive show of investor confidence on Thursday as U.S. spot Bitcoin and Ethereum exchange-traded funds (ETFs) attracted their largest combined daily net inflows since January. With more than $1.05 billion pouring into these funds in a single day, the inflows underline growing interest in digital assets during a pivotal moment for both Bitcoin (BTC) and Ethereum (ETH) prices.
Bitcoin ETFs Dominate with Nearly $935 Million in a Day
Leading the charge was the spot Bitcoin ETF segment, which saw an incredible $934.8 million in net inflows on May 22. The surge in demand coincided with Bitcoin hitting a new all-time high of $112,000 earlier in the week. According to data compiled by The Block, this is the largest single-day inflow for Bitcoin ETFs since January 17—just before the previous peak in BTC price.
BlackRock’s iShares Bitcoin Trust (IBIT) took center stage, accounting for the lion’s share of the capital with a massive $877.2 million inflow. The fund’s dominance isn’t new—it has recently entered the top five ETFs by year-to-date net inflows across all asset classes. Bloomberg’s Senior ETF Analyst, Eric Balchunas, quipped that IBIT has gone “Full Pac-Man,” gobbling up market share rapidly and pushing its assets under management to a staggering $68.7 billion.
Other major players also contributed to the inflow numbers. Fidelity’s FBTC added $48.7 million, while Ark Invest’s ARKB brought in $8.9 million. Some smaller ETFs reported zero flows, but the overwhelming momentum of the leading funds was enough to generate significant market buzz.
This latest injection extended the spot Bitcoin ETFs’ streak of consecutive daily inflows to seven days, accumulating $3.2 billion over that period. Since their debut in January 2024, the total net inflows now stand at $44.6 billion—a milestone that speaks volumes about institutional faith in Bitcoin’s long-term prospects.
Ethereum ETFs Rally with Strongest Inflows Since February
While Bitcoin ETFs made headlines with jaw-dropping numbers, Ethereum ETFs quietly posted their best day since early February. U.S. spot Ethereum ETFs recorded $110.5 million in net inflows on Thursday, pushing their five-day total to $211.8 million.
Fidelity’s FETH led the Ethereum ETF group with $42.2 million in inflows, followed closely by Grayscale’s ETHE with $43.7 million. Bitwise’s ETHW also performed well, bringing in $5.7 million. Surprisingly, BlackRock’s ETHA and a few other ETFs recorded no flows, but the aggregate figure still highlighted renewed enthusiasm for Ethereum exposure.
Ethereum’s resurgence is partly due to its recent rally in price, which has seen ETH rise more than 90% from its April low of $1,392 to around $2,668. Although it hasn’t matched Bitcoin’s new record highs, the trend suggests that investor sentiment is improving—especially in anticipation of potential Ethereum ETF approvals and a possible price breakout.
Why the Inflows Matter: ETF Popularity Signals Mainstream Acceptance
ETFs are among the most accessible and regulated ways for retail and institutional investors to gain exposure to cryptocurrencies without directly purchasing the digital assets. The record-breaking inflows into both Bitcoin and Ethereum ETFs highlight growing mainstream confidence in digital currencies as a viable asset class.
“ETF inflows were exceptionally strong yesterday — both figures significantly exceeding recent daily averages and driving continued market strength,” said Valentin Fournier, Lead Research Analyst at BRN.
The inflows also show that institutional players may be behind the latest wave of demand, especially as market volatility decreases and price recovery stabilizes. According to Michael Harvey, Head of Franchise Trading at Galaxy, corporate buyers and a “risk-on” environment are fueling much of the current momentum. He speculates that while some of the supply might come from seized foreign government assets or retail profit-taking, the demand is clearly institutional.
Bitcoin in Price Discovery: Room to Grow?
Bitcoin has officially entered price discovery mode after breaking through its previous high of $109,000 set in January. On Thursday, BTC briefly touched $112,000, marking a 7% gain over the past week and a full recovery from its 32% dip earlier this year when it fell below $75,000.
Market analysts see more room for growth. Thomas Erdösi, Head of Product at CF Benchmarks, pointed out that this current rally seems more “measured” than euphoric. “There’s little evidence of excessive leverage in spot–futures spreads, suggesting that the rally still has legs,” he explained.
While weekend trading typically brings lower liquidity and higher risk, the influx of institutional money into ETFs may help offset any short-term turbulence.
Ethereum Still Lags but Builds Momentum
Unlike Bitcoin, Ethereum hasn’t broken its all-time high of $4,870, set back in November 2021. Its December rally to $4,111 was close, but since then, ETH has underperformed compared to BTC. From that point, it dropped 66% against the U.S. dollar and 50% against Bitcoin, hitting a bottom of $1,392 in early April.
However, the recovery has been strong. Ethereum has since rebounded 91%, and the latest ETF inflows suggest a shift in sentiment. Analysts at Greek.live noted that the underperformance could soon reverse as ETH gains traction, especially with expectations for it to hit $3,000 by June.
The Bigger Picture: Crypto’s Institutional Era
The record inflows into Bitcoin and Ethereum ETFs highlight a broader trend—cryptocurrencies are entering their institutional era. What began as a retail-driven revolution is now being supported by Wall Street giants, hedge funds, and asset managers who see digital assets as a legitimate part of diversified portfolios.
The approval and success of U.S. spot crypto ETFs have opened new doors for traditional finance to engage with blockchain technology in a secure, regulated manner. With over $44 billion now parked in Bitcoin ETFs and $2.7 billion in Ethereum ETFs, these funds are proving to be key gateways for mainstream adoption.
Conclusion: Inflows Could Be a Precursor to Bigger Moves
Thursday’s combined inflow of over $1 billion into BTC and ETH ETFs is a clear indication that investor appetite is far from waning. While price volatility is always a factor in crypto, the long-term outlook—especially given the current strength of institutional flows—appears more promising than ever.
Bitcoin’s move into price discovery and Ethereum’s slow but steady recovery could pave the way for another significant leg up in the crypto bull market. As always, traders should stay cautious, but the signs are clear—crypto is not just back; it’s evolving.
