Last week, Bitcoin broke through the $120,000 mark for the first time in its history, becoming the fifth most valuable asset in the world, ahead of Amazon in terms of market capitalization. While the price action made headlines, the real story lies in the scale and nature of the capital flowing into the asset class, signaling a deepening institutional footprint in crypto markets.
Record Weekly Inflows into ETPs
According to the latest Bitwise Crypto Market Compass, global crypto ETPs saw nearly $4 billion in net inflows, the strongest weekly figure of 2025. U.S. spot Bitcoin ETFs captured the lion’s share, with $2.7 billion in net flows and over 23,800 BTC acquired over five trading days — a volume nearly ten times the amount of newly mined BTC, creating a significant supply-demand imbalance.
Ethereum ETPs also saw their best week of the year, with nearly $1 billion in net inflows, supporting a broader rotation into altcoins. Institutional investors appear to be gradually diversifying exposure, a signal of growing maturity in portfolio construction within the digital asset space.
Weekly Net Flows by Asset Class – 2025 (Source: Bitwise Europe)
The data shows a clear reversal from the outflows observed in March. Since April, flows into Bitcoin have been steadily increasing, followed by Ethereum and, to a lesser extent, altcoins. Basket and thematic ETPs remain more marginal, indicating that investors continue to prioritize liquid, high-conviction exposures.
A Rally Built on Fundamentals, Not Hype
Despite the historic price levels, market sentiment remains measured. Bitwise’s proprietary Cryptoasset Sentiment Index points to a constructive but not euphoric environment. Indicators such as low retail search interest and restrained derivatives positioning suggest that the current rally is primarily institutional and far from speculative overheating.
Moreover, net buying by BTC whales and a sustained decline in exchange reserves reinforce the structural nature of this move. Notably, large holders withdrew over 15,000 BTC from exchanges last week, reinforcing long-term conviction.
Macro Tailwinds Strengthen the Thesis
This rally is taking place in a context of renewed macro uncertainty and fiscal expansion. The recent enactment of the “One Big Beautiful Bill” in the U.S., raising the debt ceiling by $5 trillion, has increased concerns over long-term sovereign debt sustainability. Combined with speculation over potential Fed leadership changes and calls for aggressive rate cuts, the monetary and fiscal outlook appears increasingly favorable to non-sovereign stores of value such as Bitcoin.
Meanwhile, stress signals from other sovereign bond markets — particularly in Japan — illustrate how traditional safe havens are coming under pressure. Against this backdrop, Bitcoin’s value proposition as a decentralized, scarce, and non-correlated asset is being repriced by market participants.
The current rally is not driven by speculative frenzy, but by a confluence of structural inflows, macro rebalancing, and rising institutional conviction.
With over $7 billion in net inflows into crypto ETPs since the start of Q2, digital assets are increasingly seen as a core component of long-term allocation strategies. The rising appetite for Ethereum and altcoins further signals a broadening of exposure, albeit still disciplined. If macro conditions persist, the setup for Bitcoin and crypto markets remains favorable in the months ahead.
📩 To explore the full analysis: Bitwise Crypto Market Compass – July 2025