Crypto ETFs Set New Record With $12.8B in July Inflows Amid Market Rally
Crypto exchange-traded funds listed on U.S. markets saw unprecedented inflows in July, pulling in $12.8 billion — the highest monthly total on record — as a strong rally in digital assets and improving regulatory conditions boosted investor demand.
The data, reported by Bloomberg Intelligence analyst Eric Balchunas, marks a significant milestone for the crypto ETF market, surpassing the previous record set in November 2024. That earlier surge coincided with the election of Donald Trump, seen by many as a pro-crypto candidate. This time, however, the momentum appears more closely tied to market fundamentals and structural improvements.
The broader crypto market delivered strong performance throughout July. The CoinDesk 20 Index rose over 21%, while Bitcoin gained 7% and briefly touched a new all-time high of $122,408 before retreating to around $115,240 by month’s end.
BlackRock’s iShares Bitcoin Trust (IBIT) accounted for a large share of the flows, solidifying its status as a dominant force in the ETF space. With assets under management exceeding $86 billion, IBIT has overtaken traditional funds like the iShares Core S&P 500 ETF (IVV) and the iShares Russell 2000 ETF (IWM). Its higher fee structure has also made it a more profitable vehicle for BlackRock than many of its core equity products.
Investor confidence was further bolstered by a key regulatory development. Earlier this week, the U.S. Securities and Exchange Commission approved in-kind creation and redemption mechanisms for all spot Bitcoin and Ethereum ETFs — a change expected to increase efficiency, reduce tax implications, and attract greater institutional participation.
The in-kind process enables large asset managers to exchange crypto holdings directly with ETF issuers without triggering taxable events or facing liquidity constraints — a critical feature for operating at institutional scale.
With inflows surging, market momentum building, and regulatory frameworks evolving, crypto ETFs are rapidly emerging as a preferred access point for large-scale exposure to digital assets.
