Record-Breaking ETF Inflows Signal Institutional Crypto Adoption

American spot Bitcoin exchange-traded funds have achieved an unprecedented milestone, recording consecutive daily inflows exceeding $1 billion for the first time since their January 2024 debut. The landmark achievement comes as Bitcoin's price surged to new all-time highs above $118,000 this week.

Unprecedented Demand Meets Limited Supply

【$2.72 billion】flowed into Bitcoin ETFs during the five trading days ending Friday, with Thursday's $1.17 billion intake ranking as the second-largest single-day inflow in history. ——This demand shock is creating unprecedented supply pressure—— according to industry analysts, with ETF purchases reportedly exceeding daily Bitcoin production by 22-fold on Wednesday.

BlackRock's IBIT Shatters Growth Records

The world's largest asset manager has seen its Bitcoin fund (IBIT) become the fastest ETF ever to cross $80 billion in assets, achieving the feat in just 374 days. Remarkably, the product now generates more annual revenue than BlackRock's flagship S&P 500 ETF, signaling a dramatic shift in investor preferences.

Market Mechanics Under Strain

Bitwise CIO Matt Hougan highlighted the growing imbalance, noting that while the Bitcoin network produces about 450 coins daily, ETFs absorbed approximately 10,000 BTC on Thursday alone. Jan3 CEO Samson Mow warned the current demand levels appear unsustainable at existing price points.

Price Rally Fuels Institutional Interest

Bitcoin's 8.85% weekly gain to $118,780 has created a self-reinforcing cycle of investment. The entire spot Bitcoin ETF sector now holds over $140 billion in assets, though analysts note price appreciation accounts for much of the growth. Interestingly, this surge occurs despite the S&P 500's underperformance when measured in Bitcoin terms.

Regulatory Milestones and Market Maturation

The sustained inflows follow November 2024's record $1.37 billion single-day intake after the U.S. election results. Market observers suggest the back-to-back billion-dollar days demonstrate growing mainstream acceptance of cryptocurrency as a legitimate asset class among traditional investors.