Crypto ETFs Just Had Their Best Month Ever – $12.8B Inflows in July
The crypto market soared in July, and U.S.-listed crypto ETFs rode the wave, recording their biggest-ever monthly inflow. Major changes in regulation and growing institutional interest are fueling this momentum.
- U.S. crypto ETFs bought in $12.8B in July – a new record.
- BlackRock’s IBIT now holds $86B+, surpassing major ETFs like IVV and IWM.
- The SEC approved in-kind creation for spot BTC and ETH ETFs, boosting appeal.
- The CoinDesk 20 Index jumped 21%, while BTC hit a new ATH at $122K.
- Institutional investors are diving in thanks to stronger fundamentals, not just hype.
U.S.-listed crypto exchange-traded funds saw an explosive $12.8 billion in net inflows in July — the strongest month ever recorded. The surge follows a broader market rally, with the CoinDesk 20 Index jumping more than 21%, and Bitcoin rising 7% to a new all-time high of $122,408.
US Crypto ETFs. Source: Eric Balchunas on X
Driving much of this action is BlackRock’s iShares Bitcoin Trust (IBIT), now managing over $86 billion. That makes it bigger than ETFs tracking the S&P 500 (IVV) and Russell 2000 (IWM). BlackRock’s higher fee structure on IBIT also means stronger revenue potential than traditional equity funds.
Another key catalyst: the SEC’s approval of in-kind creation/redemption for spot BTC and ETH ETFs. This allows institutional investors to swap crypto directly into the ETF without triggering taxable events – improving efficiency, cost, and liquidity management.
The previous monthly record, $10.4 billion in November 2024, came after Trump’s election win. But this time, the rally appears fundamentally driven, with increased confidence in regulatory clarity and a maturing market.
Final Thought
July proved to be a milestone month for crypto ETFs, with record inflows and rising institutional confidence. Backed by regulatory improvements and surging asset values, crypto funds are now competing head-to-head with traditional giants — and they’re just getting started.
