Crypto ETFs Attract Billions as Prices Hit New Highs

These impressive inflows were fueled by surging investor demand and record-breaking price moves. Bitcoin soared to a new high, which triggered over $1 billion in short liquidations across the crypto market. Accumulation by long-term holders also reached a yearly high, signaling strong bullish sentiment. Analysts suggest the rally may continue, supported by supply-demand imbalances, rising realized cap, and bullish technical patterns.

Bitcoin and Ether ETFs See Massive Inflows

Bitcoin and Ethereum investors funneled massive amounts into crypto exchange-traded funds (ETFs) on Thursday, which made it the second-largest daily inflows for both asset classes since their respective spot ETF launches. US spot Bitcoin ETFs pulled in a total of $1.17 billion, with BlackRock’s iShares Bitcoin Trust (IBIT) attracting $448 million and Fidelity’s Wise Origin Bitcoin Fund accounting for $324 million, according to data from Farside Investors. 

Bitcoin ETF flow (Source: Farside Investors)

These near-record inflows accompanied a surge in Bitcoin’s price, which reached a new high of $113,800 and continued to rally into Friday. The only larger daily inflow came on Nov. 7, 2024, which coincided with Donald Trump’s US presidential election victory, when Bitcoin ETFs recorded $1.37 billion in inflows.

Spot Ethereum ETFs also saw robust activity after drawing $383.1 million in net inflows — their second-largest daily intake ever. BlackRock’s iShares Ethereum Trust ETF (ETHA) was the standout performer, and recorded a record $300.9 million in net inflows on Thursday alone. 

Ethereum ETF flow (Source: Farside Investors)

Despite the strong demand, financial advisors from traditional platforms are still hesitant. Nate Geraci, president of NovaDius Wealth Management, pointed out in an X post that major firms like Vanguard are still restricting access to these ETFs, creating a barrier for adoption.

The appetite for these ETFs is now outpacing the issuance of the underlying assets. Data from Ultra Sound Money revealed that Ethereum’s net issuance over the past 24 hours was 2,110 ETH, worth around $6.33 million. This figure was dwarfed by the $383.1 million that was funneled into Ethereum ETFs that same day. 

Bitcoin is witnessing a similar dynamic. Galaxy Research reported that in 2025 alone, US spot Bitcoin ETFs purchased $28.22 billion worth of BTC, while miners have only produced $7.85 billion worth of new supply. This growing imbalance could support higher prices in the long run.

Bitcoin Shorts Crushed

It was not only crypto ETFs that set new records thanks to the crypto market rally. Bitcoin short-sellers faced a huge blow on Thursday after the cryptocurrency soared to fresh all-time highs. This triggered over $1 billion in liquidations across the crypto market in 24 hours. 

According to data from CoinGlass, more than $1 billion in short positions were wiped out, which affected 232,149 traders. Of this, approximately $678 million came from Bitcoin shorts, while $258 million were Ethereum-related. The sharp move took place after Bitcoin’s breakout to a new record price on Thursday.

24 hour liquidation heatmap (Source: GoinGlass)

Crypto analyst Miles Deutscher commented “Bears in disbelief” in an X post, while Daan Crypto Trades called it a “MASSIVE Short squeeze on BTC & ETH.” Market observer Velo added, “Lots of emails are being sent,” alluding to the wave of forced liquidations hitting traders.

The overall crypto market cap surged 6.38% over the past day, reaching $3.68 trillion, according to CoinMarketCap. Although some analysts were very doubtful earlier in the week about Bitcoin pushing to new highs, Thursday’s explosive move left many surprised. The liquidation event ranks among the largest in recent history, though it still trails the $2.24 billion wiped out on Feb. 3, when President Donald Trump signed an executive order imposing tariffs that raised fears of a global trade war.

BTC Accumulation Hints at More Upside

Bitcoin surged to $113,800 on Thursday as demand from long-term accumulation addresses spiked. According to CryptoQuant, these accumulation addresses held 248,000 BTC on Wednesday—which was a new yearly high and a 71% increase in 30-day demand since June 22. The last time accumulation reached this level was in December of 2024, when Bitcoin was trading at $97,000 and the all-time high of 278,000 BTC was recorded. The current uptick in demand despite higher prices suggests that confidence among strategic buyers is quite strong.

Bitcoin demand from accumulator addresses (Source: CryptoQuant)

Demand momentum also sharply rebounded after previously dipping to 2024 Q4 lows. While cumulative demand, which includes selling pressure, is negative, its recent recovery points to buyers starting to regain some control. This shift implies that there is a foundational bullish interest in Bitcoin, with strategic accumulation outweighing short-term profit-taking behavior.

Market analyst Axel Adler Jr. pointed to the MVRV ratio as a key indicator to watch for potential profit-taking. When the MVRV hits 2.75, it typically signals an inflection point where investors begin to distribute holdings. Currently, this threshold aligns with a Bitcoin price of $130,900—around 17% higher than Thursday’s peak. This indicates that the rally may still have room to run before profit-taking begins.

Supporting this outlook, Glassnode reported a $4.4 billion increase in Bitcoin’s realized cap as the price surpassed $113,000. Unlike market cap, realized cap only rises when coins are moved at higher prices. This means that fresh capital is entering the market rather than simply driving speculative gains.

Boosting the bullish sentiment even more, Milk Road co-founder Kyle Reidhead reaffirmed his $150,000 price target for Bitcoin, due to a bullish cup and handle pattern seen last month. His post on X after Bitcoin’s move above $112,000 reflects the broader confidence that the current rally could extend before encountering major resistance or correction.