Bitcoin Tops $118K: ETFs to Make the Most of the Rally

Bitcoin has soared to a new all-time high, surpassing $118,000 for the first time in its history, reaching a milestone in its meteoric rise. The explosive rally was driven by renewed institutional demand, robust spot Bitcoin ETF inflows and growing optimism surrounding global crypto adoption. The rally also reflects broader investor appetite for alternative assets amid a shifting macroeconomic landscape.

The surge comes amid persistent global economic and geopolitical uncertainty, signaling a growing perception of Bitcoin as a safe-haven asset, akin to digital gold. Bitcoin is now up about 26% since the start of 2025. Investors seeking to participate in the Bitcoin rally can consider any of the popular ETFs — BlackRock iShares Bitcoin Trust IBIT, Fidelity Wise Origin Bitcoin Trust FBTC, Grayscale Bitcoin Trust ETF GBTC, ARK 21Shares Bitcoin ETF ARKB and Grayscale Bitcoin Mini Trust ETF BTC.

Strong Institutional Demand & ETF Inflows

Bitcoin has witnessed sustained inflows from institutional investors, driven by increased adoption of spot Bitcoin ETFs in the United States and Europe. According to Trading News, Bitcoin ETFs have gathered $7.1 billion in capital over the past five trading sessions, one of the largest weekly inflows in 2025. Per etf.com, Bitcoin ETFs have accumulated $50.1 billion in total inflows since their launch last year and $14.9 billion so far this year.

Additionally, Trump's business ventures are making waves in the space. According to an SEC filing on Tuesday, Trump Media & Technology Group is preparing to launch a crypto-focused ETF that will invest in multiple tokens, including Bitcoin. Corporations are also ramping up participation in cryptocurrency. Companies like Strategy (MSTR) and GameStop (GME) have continued to add bitcoin to their balance sheets. 

The options market is also reflecting renewed bullish momentum. Open interest, or the number of outstanding contracts on the Deribit exchange, has grown increasingly concentrated around call options at the $115,000 and $120,000 strike levels, indicating continued investor optimism (read: Bitcoin Plunges Below $100K: Time to Buy the Dip?).

Regulatory Momentum

Earlier this year, the Trump administration approved the creation of a strategic Bitcoin reserve, signaling a notably pro-crypto regulatory stance. The much-anticipated “Crypto Week,” set to begin July 14, is expected to provide another boost to Bitcoin. U.S. lawmakers are expected to advance at least three key bills aimed at establishing a regulatory framework for digital assets. A favorable outcome can accelerate institutional inflows, reinforce Bitcoin’s status as a macro asset and boost confidence in regulatory-compliant crypto platforms. This signals growing institutional and regulatory engagement with digital assets. 

Among the key proposals is the GENIUS Act, which recently cleared the Senate. The bill outlines a federal framework for regulating stablecoins.

Macroeconomic Tailwinds

The cryptocurrency is increasingly being viewed as a hedge against both inflation and geopolitical uncertainty, especially amid ongoing tensions in Eastern Europe and Asia.

Outlook

Bitcoin’s latest rally underscores a resurgence in investor confidence, particularly from institutional players increasingly seeking exposure to digital assets as a hedge and growth opportunity. With regulatory clarity improving and demand rising, analysts suggest the crypto bull cycle may still have room to run.

Let us delve into the above-mentioned ETFs in detail:

BlackRock iShares Bitcoin Trust (IBIT)

iShares Bitcoin Trust seeks to reflect the performance of the price of Bitcoin. It enables investors to access Bitcoin within a traditional brokerage account. The fund charges 25 bps in annual fees from investors. IBIT has an AUM of $76.3 billion and trades in an average daily volume of $43 million shares (read: Bitcoin ETF (IBIT) Hits New 52-Week High).  

Fidelity Wise Origin Bitcoin Trust (FBTC)

Fidelity Wise Origin Bitcoin Trust also offers exposure to the price of Bitcoin without buying Bitcoin directly in brokerage, trust and tax-advantaged accounts. It has accumulated $22.2 billion in its asset base. It charges 25 bps in annual fees and trades in an average daily volume of 2.5 million shares.

Grayscale Bitcoin Trust (GBTC)

Grayscale Bitcoin Trust is the first Bitcoin ETF that enables investors to gain exposure to Bitcoin in the form of security, while avoiding the challenges of buying, storing and safekeeping Bitcoin directly. It owns and passively holds actual Bitcoins through its Custodian, Coinbase Custody. Grayscale Bitcoin Trust has an AUM of $20 billion and charges 1.50% in annual fees from investors. It trades in an average daily volume of 2 million shares and is a cheaper version of Bitcoin.

ARK 21Shares Bitcoin ETF (ARKB) 

ARK 21Shares Bitcoin ETF has amassed $5.2 billion in its asset base. It seeks to track the performance of Bitcoin, as measured by the performance of the CME CF Bitcoin Reference Rate – New York Variant. It has an expense ratio of 0.21% and trades in a volume of 2 million shares per day on average.

Grayscale Bitcoin Mini Trust ETF (BTC) 

With an AUM of $5 billion, Grayscale Bitcoin Mini Trust ETF seeks to reflect the value of Bitcoin held by the Trust. It is the low-cost Bitcoin ETF, charging just 15 bps in annual fees and trading in a volume of 951,000 shares per day on average.

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