Can Bitcoin ETF inflows shift the asset into its next bull cycle?

Yes - sustained ETF inflows are already reshaping Bitcoin’s market structure and could act as the catalyst for its next bull cycle. Bitcoin ETFs have doubled their assets under management in the past year to $150 billion, compared with $180 billion for gold ETFs. Inflows remained strong, with $179 million added in a single day on 28 August, led by Ark 21Shares and BlackRock’s IBIT fund. 

This momentum reflects accelerating institutional adoption, which has reduced Bitcoin’s volatility by 75% from 2023 levels. The immediate question for traders is whether these flows can lift Bitcoin through resistance or if the rally will pause as gold continues to attract safe-haven demand.

Key takeaways

• Bitcoin ETF assets have surged 100% in the past year to $150 billion, closing in on gold ETFs at $180 billion.
  
• BlackRock’s IBIT fund leads globally with $86.2 billion in AUM and nearly all U.S. Bitcoin ETF inflows.
  
• Daily inflows remain strong, with $179 million added in one session and $2.54 billion traded.
  
• ETF adoption has made Bitcoin more investable, reducing volatility and aligning it with institutional portfolios.
  
• Gold continues to attract central bank demand, with 710 tonnes purchased in 2025 and ETF inflows of $21.1 billion.
  
• Portfolio strategies increasingly combine both assets: 5–10% Bitcoin, 10–15% gold.
  

Bitcoin ETF assets are closing in on gold ETF

Just three years ago, gold ETFs were five times larger than Bitcoin ETFs. Today, Bitcoin ETF assets have reached $150 billion against gold’s $180 billion. If current growth continues, Bitcoin ETFs could surpass gold ETFs as early as 2026. 

This narrowing gap signals a broader shift in investor confidence from a centuries-old safe haven to a digital store of value less than two decades old.

Inflows signal strong institutional demand

Bitcoin ETFs are recording consistent inflows. On one day alone, $179 million flowed into Bitcoin ETFs, with no outflows reported. 

Ark 21Shares’ ARKB led with $79.81 million, followed by BlackRock’s IBIT with $63.72 million. Additional inflows came from Bitwise’s BITB ($25.02 million), Grayscale’s Bitcoin Mini Trust ($5.45 million), and Fidelity’s FBTC ($4.89 million). This lifted sector AUM to $144.96 billion, with $2.54 billion in total trading volume for the day.

Such inflows highlight ETFs as the new engine of Bitcoin liquidity. Spot Bitcoin ETFs in the U.S. now generate $5-10 billion in daily volumes on peak days, providing institutional-scale entry points. With ETFs now accounting for roughly 20% of new liquidity entering the crypto market, they are increasingly decisive in shaping Bitcoin’s trajectory.

Bitcoin adoption through regulation

The SEC’s approval of spot Bitcoin ETFs provided the breakthrough for institutional adoption. BlackRock’s IBIT dominates with $86 billion in AUM, capturing nearly 97% of Q2 inflows. For institutions, Bitcoin now offers a hedge against monetary easing and inflation, with correlations to both equities and interest rate cycles.

Bitcoin ETF vs gold ETF: Gold still plays the safe-haven role

Despite Bitcoin’s rapid rise, gold remains a cornerstone in global portfolios. Central banks bought 710 tonnes in 2025, while ETFs absorbed $21.1 billion in inflows. The SPDR Gold Shares (GLD) remains the largest fund with $104.45 billion in AUM. 

During Q2 2025, gold ETFs attracted $3.2 billion in inflows during geopolitical stress, demonstrating that gold still outperforms Bitcoin when risk aversion spikes.

Generational and institutional divide

Investor surveys confirm shifting preferences. Among 730 respondents, 73% of Millennials and Gen Z preferred Bitcoin over gold for long-term allocation, citing transparency and growth potential. 

Institutions are catching up, with 59% now allocating over 5% or more of portfolios to Bitcoin. ETF structures have lowered custody and compliance barriers, accelerating adoption across the professional investment space.

Bitcoin price technical analysis

For traders, the central question is whether ETF inflows can lift Bitcoin through resistance. Analysts see long-term potential up to $200,000 by 2026–2027, but near-term moves hinge on whether flows remain strong. Recent streaks of daily inflows, combined with reduced volatility and deepening liquidity, suggest the foundation is in place for a breakout if momentum continues.

At the time of writing, Bitcoin is sitting at a support and resistance level, with sellers closing in on a buy zone. If sellers breach current levels and send prices tumbling, they could find support at the $107,385 price level. If we see an uptick, prices could find resistance at the $117,300 and $123,380 resistance levels.

Investment implications

ETF inflows are now the dominant force behind Bitcoin’s market structure. For traders, this means that institutional demand is the key indicator to watch. If inflows continue at current levels, Bitcoin has the liquidity base to enter its next bull cycle. If flows stall, resistance could cap near-term rallies.

For medium-term investors, a dual allocation strategy remains optimal: Bitcoin for growth and inflation hedging and gold for crisis protection. As ETFs accelerate the adoption of both assets, Bitcoin’s challenge to gold is not just about performance - it marks a structural change in global capital allocation.

Trade on the next movements of Bitcoin with a Deriv MT5 account today.

Frequently asked questions

Why are Bitcoin ETFs growing so quickly?

The SEC’s approval of spot ETFs in 2024 gave institutions a regulated entry point. This unlocked large inflows, with BlackRock’s IBIT alone managing over $86 billion. ETFs now trade billions daily, making Bitcoin far more accessible and liquid than in previous cycles.

Why does gold remain relevant?

Gold still dominates in crises. Central banks bought 710 tonnes in 2025, and ETFs attracted over $21 billion. During geopolitical shocks, gold consistently outperforms Bitcoin as the go-to safe haven.

What is the typical portfolio allocation in 2025?

Most diversified strategies allocate 5–10% to Bitcoin and 10–15% to gold. This balance captures Bitcoin’s upside while keeping gold as a stabiliser against macro and geopolitical risks.

Can ETF inflows really move Bitcoin’s price?

Yes. On one recent day, Bitcoin ETFs pulled in $179 million with no outflows. With ETFs now providing about 20% of new crypto liquidity, sustained inflows are a direct driver of Bitcoin’s price action around resistance.

‍