Crypto ETFs See Record $12.8B in July Inflows as Market and Regulatory Tailwinds Align
Crypto exchange-traded funds in the U.S. posted their best month on record in July, drawing $12.8 billion in net inflows as digital asset prices surged and regulatory clarity improved.
The data, shared by Bloomberg Intelligence’s Eric Balchunas, marks a new high for the crypto ETF sector, surpassing the previous record from November 2024 — a period that coincided with the election of Donald Trump, widely viewed as favorable to crypto policy. This time, the surge is being driven less by politics and more by market performance and structural advancements.
The CoinDesk 20 Index, which tracks major digital assets, gained over 21% in July. Bitcoin rose 7%, reaching a new all-time high of $122,408 before settling near $115,240.
Leading the inflow activity was BlackRock’s iShares Bitcoin Trust (IBIT), which has rapidly become one of the largest ETFs in the country. With more than $86 billion in assets under management, IBIT now surpasses major traditional funds like the iShares Core S&P 500 ETF (IVV) and the iShares Russell 2000 ETF (IWM). Its relatively high fee structure also makes it one of BlackRock’s most profitable ETF offerings.
Fueling additional optimism was the U.S. Securities and Exchange Commission’s recent approval of in-kind creation and redemption mechanisms for all spot Bitcoin and Ethereum ETFs. The change allows institutions to exchange crypto assets directly within ETF structures — reducing tax exposure and operational friction.
For large-scale managers, the in-kind model improves efficiency and scalability, making crypto ETFs more attractive as a long-term allocation tool.
With capital flowing in at record levels, prices hitting new highs, and regulatory infrastructure maturing, crypto ETFs are solidifying their position as a core gateway for institutional exposure to digital assets.
