Institutional interest intensifies as digital gold narrative drives billions into bitcoin-focused funds
Cryptocurrency markets witnessed a powerful resurgence last week, with bitcoin emerging as a perceived safe haven amid turbulent equity markets and mounting economic uncertainty. Institutional investors poured more than US$3.2 billion into crypto-related exchange-traded funds, signalling renewed confidence in digital assets despite ongoing market volatility.
Bitcoin remained flat for the year, contrasting sharply with the S&P 500’s nearly six per cent decline, a performance gap that has fuelled comparisons between the world’s largest cryptocurrency and traditional hedges like gold.
Exchange-traded products tied to bitcoin and ether posted their strongest inflows of 2025, according to data compiled by Bloomberg. The iShares Bitcoin Trust ETF led the surge, attracting nearly US$1.5 billion in new capital—its largest weekly inflow this year. Other bitcoin-focused products followed suit, with the ARK 21Shares Bitcoin ETF drawing more than US$620 million and the Fidelity Wise Origin Bitcoin Fund seeing approximately US$574 million in inflows.
Ether-based investment products also experienced a shift in sentiment, logging their first net weekly inflows since February, according to figures from Wintermute Trading Ltd.
The broader market rally lent momentum to crypto assets. The S&P 500 gained 4.6 per cent on optimism surrounding tariff negotiations, while bitcoin jumped 10 per cent to nearly US$94,000—its strongest weekly performance since the aftermath of the U.S. presidential election.
“Net spot ETF inflows, which are a barometer of institutional interest in bitcoin, have ramped up,” wrote Simon Peters of eToro Group Ltd. “With gold at record highs, could investors also be seeing bitcoin, dubbed as ‘digital-gold’ due to its similar scarcity characteristics, as a potential safe haven or alternative asset to invest in if economic uncertainties continue on?”
Bitcoin’s resilience is drawing comparisons to its behaviour during former President Donald Trump’s initial trade war era, when the cryptocurrency defied equity market declines. Now, as Trump pivots toward greater support for crypto, the sector is seeing renewed bullish sentiment.
The president is scheduled to host a dinner with the top 220 holders of the Trump memecoin, a move that spurred a price jump in the controversial token. Behind the scenes, his administration is taking more steps to align with the digital asset ecosystem.
Meanwhile, institutional enthusiasm is driving long-term projections for bitcoin to new extremes. MicroStrategy Inc.’s Michael Saylor—whose company has been rebranded as Strategy—told an audience at a Bitwise Investment Advisers event that he envisions bitcoin soaring to US$13 million by 2045.
“IBIT is a raging success — I’ll predict it will be the biggest ETF in the world in 10 years,” said Saylor, referring to the iShares Bitcoin Trust ETF.
His prediction, however, is not without scepticism. Currently, the Vanguard S&P 500 ETF (VOO) ranks as the largest ETF globally, with assets exceeding US$600 billion. According to Nate Geraci, president of The ETF Store Inc., IBIT’s total holdings merely match the amount VOO has accumulated in 2025 alone.
Writing on X, Geraci remarked that it would be a “herculean feat for IBIT” to dethrone VOO as the world’s dominant ETF. Nonetheless, the influx of capital into bitcoin signals a shifting narrative among investors searching for shelter in an uncertain economic landscape.
