July Sees Unprecedented $12.8B Inflows Into Crypto ETFs as Prices Surge

Crypto ETFs Shatter Inflow Record With $12.8B in July as Market Surges

Crypto-focused exchange-traded funds (ETFs) listed in the U.S. brought in a record-breaking $12.8 billion in net inflows in July, marking the sector’s strongest month to date amid a broad-based rally and growing investor confidence.

According to data shared by Bloomberg Intelligence’s Eric Balchunas, the inflow surge eclipses the previous high set in November 2024, when markets rallied following Donald Trump’s election win. Unlike that politically driven spike, July’s momentum appears grounded in strong market performance and improving regulatory clarity.

The CoinDesk 20 Index — a benchmark tracking the top digital assets — jumped over 21% in July. Bitcoin rose 7% during the same period, notching a new all-time high of $122,408 before easing to around $115,240 by month-end.

Much of the inflow was concentrated in BlackRock’s iShares Bitcoin Trust (IBIT), which has rapidly grown into one of the most dominant ETFs in the U.S. With more than $86 billion in assets under management, IBIT now surpasses legacy funds like the S&P 500-tracking IVV and the small-cap-focused IWM. Its relatively higher fees also make it a more profitable product for BlackRock compared to its flagship equity ETFs.

The bullish backdrop was further supported by a regulatory shift earlier this week, when the U.S. Securities and Exchange Commission approved in-kind creation and redemption for all spot Bitcoin and Ethereum ETFs. This structural change is expected to significantly improve fund efficiency, tax treatment, and appeal to large institutional investors.

In-kind mechanisms allow ETF issuers to exchange crypto assets without executing taxable trades or facing liquidity friction, streamlining portfolio management and lowering operational costs — especially at scale.

With rising prices, institutional adoption, and a more favorable regulatory landscape, the record-setting inflows may signal deeper capital rotation into crypto as a mainstream asset class.