Bitcoin ETFs Pull $408M—Fidelity & ARK Spark the Next BTC Wave As ETH Struggles

Bitcoin exchange-traded funds (ETFs) dominated institutional flows, with a massive $407.78 million in daily net inflows on July 2, bringing cumulative inflows to $49.04 billion.

In contrast, Ethereum ETFs faced modest $1.8 million outflows, according to data from SosoValue.

The stark difference resulted from Bitcoin’s continued institutional appeal as BTC reached weekly highs of $109,000 on July 2, positioning it for potential breakouts toward $112,000 targets.

Fidelity’s FBTC led Bitcoin ETF inflows with $183.96 million, followed by ARK21Shares’ ARKB at $83 million and Bitwise’s BITB contributing $64.94 million.

BlackRock’s IBIT, despite recording zero inflows on the day, maintains its dominant position with $76.31 billion in net assets and $52.42 billion in cumulative inflows since launch.

The performance disparity between Bitcoin and Ethereum ETFs followed the broader market trend, as Bitcoin maintains psychological support above the $100,000 level defended since early May.

Total Bitcoin ETF assets under management reached $136.68 billion, representing 6.30% of Bitcoin’s total market capitalization. This indicates a significant level of institutional adoption.

Trading volumes also surged to $5.22 billion across Bitcoin ETFs, with IBIT alone generating $4.08 billion in daily trading activity.

Institutional Momentum Drives Record Bitcoin ETF Adoption

Bitcoin ETF inflows demonstrate sustained institutional conviction, despite broader market volatility, with the latest inflows representing the continuation of aggressive accumulation patterns seen so far in 2025.

Particularly, Fidelity’s FBTC leadership, with $183.96 million in inflows, resulted from the growing competition among major asset managers for Bitcoin market share, following BlackRock’s early dominance.

The growing competition has led to a broad-based institutional adoption, rather than concentrated buying from a single entity.

Interestingly, corporate treasury strategies are increasingly embracing ETF structures over direct ownership of Bitcoin.

Design giant, Figma, recently revealed in its IPO filing that it has $69.5 million in Bitcoin ETF holdings, plus $30 million earmarked for future cryptocurrency investments.

This pattern is becoming increasingly adopted, and public companies that can’t hold directly prefer regulated exposure through established financial products.

Regionally, European expansion is also accelerating through structured products, such as the recent UniCredit’s Bitcoin ETF certificate, designed for Italian professional clients. The five-year instrument offers capital protection with 85% upside participation.

Moreover, the regulatory landscape continues to evolve favorably with the SEC’s July 1 guidance streamlining token-based ETF approvals and enabling a 75-day review process.

The new guidance establishes clearer pathways for crypto ETF approvals by implementing standardized disclosure frameworks that encompass custody practices, conflicts of interest, and creation and redemption mechanisms.

Ethereum ETFs Face Headwinds Despite Previous Momentum

Ethereum ETFs experienced modest $1.8 million outflows on July 2, contrasting sharply with their previous dominance, as they had recorded $240.29 million in daily inflows during June, surpassing Bitcoin ETFs’ performance at that time.

The June surge represented the strongest performance of Ethereum ETFs in four months, coinciding with ETH climbing above $2,800 for the first time since February.

BlackRock’s ETHA led that momentum with $163.6 million in single-day inflows, maintaining a 23-day streak without outflows while managing over 1.55 million ETH valued at $4.23 billion.

Current outflows may result from profit-taking following Ethereum’s technical breakout above multi-year descending trendlines.

The asset completed an inverse head-and-shoulders pattern with projected targets around $3,300, but recent rejection from $2,834 highs suggests consolidation phases before continued advances.

Ethereum staking also reached an all-time high of 34.65 million ETH locked on the Beacon Chain, representing nearly 29% of the circulating supply.

Long-term holders are holding on through staking despite short-term ETF flow volatility. They’re prioritizing yield generation over immediate liquidity.

Regulatory developments further support the growth of multi-asset crypto ETFs, as seen in Grayscale’s Digital Large Cap Fund conversion, which holds Bitcoin (79.9%), Ethereum (11.3%), and also XRP, Solana, and Cardano.

Similarly, the REX Osprey Solana Staking ETF was launched on Wednesday as the first US-listed fund to incorporate crypto staking.

This regulatory development could enable similar Ethereum staking products that combine institutional access with yield generation.