Hedge fund assets have reached a record $5 trillion with significant inflows of nearly $34 billion in Q3 2025, driven by strong returns, increased interest in alternatives, and gains in cryptocurrency funds, marking the most substantial quarterly inflow since 2007.
Ethereum ETFs experienced a record $1.85 billion in weekly inflows, 25 times more than Bitcoin ETFs, driven largely by hedge funds engaging in basis trades and genuine spot demand, with ETH potentially reaching $4,000 if positive sentiment persists.
Hedge funds experienced their strongest inflows since 2015 in the first half of 2025, attracting $37.3 billion amid turbulent markets and outperforming the S&P 500, with some funds posting double-digit gains, and industry assets reaching $4.74 trillion.
BlackRock experienced its lowest quarterly inflows in over a year due to a major client withdrawal in Asia, but overall assets under management reached a record $12.5 trillion, driven by market rally and currency swings. The firm is shifting focus towards private investments and technology to sustain growth, with significant acquisitions and fundraising efforts.
U.S.-listed Bitcoin ETFs saw a significant inflow of $422.5 million on Tuesday, marking a six-week high and contributing to over $1 billion in inflows over the past three days. This surge in demand coincides with a 23% recovery in Bitcoin's price since early July, driven by reduced selling pressure and political developments favoring cryptocurrency.
Spot bitcoin ETFs have seen over $16 billion in inflows since January, with $300 million added on Monday alone, marking a seven-day streak of net inflows. BlackRock’s iShares Bitcoin Trust (IBIT) led with $117.2 million, and the strong inflows come as bitcoin rebounds to $64,600. This trend contradicts bearish views that ETF interest would wane during market downturns.
Bitcoin surged past $71,000 as U.S.-listed spot bitcoin ETFs saw $880 million in inflows, led by Fidelity's FBTC with $378 million. This marked the best day of inflows since March, driven by a generally bullish sentiment and positive outlook for cryptocurrencies.
BlackRock Inc. reported a record $10.5 trillion in client assets, with $76 billion in net inflows in the first quarter, including $67 billion to ETFs and $42 billion to fixed-income funds.
The ARK 21 Shares Bitcoin ETF (ARKB) saw inflows of over $200 million for the first time, as the overall bitcoin ETF market experienced net inflows of $243.4 million, with BTC hovering around $72,000. ARKB became the third bitcoin ETF to reach this milestone in a single day, following BlackRock's IBIT and Fidelity's FBTC, which saw record low and high inflows, respectively.
U.S. spot bitcoin ETFs saw record weekly inflows of $2.57 billion and trading volume of $35.1 billion, with BlackRock's IBIT leading in both categories. However, Grayscale's GBTC fund experienced $1.25 billion in outflows. The bitcoin price hit a new all-time high of $73,836 before dropping over 12% to $64,505, with the broader crypto market also experiencing a decline.
On March 12, net spot bitcoin ETF inflows surpassed $1 billion, with Blackrock's IBIT product seeing a record $849 million inflow. This marks another day of record inflows for recently approved spot bitcoin exchange-traded funds in the United States, bringing total net bitcoin ETF inflows since Jan. 11, 2024 to $11.1 billion. Spot bitcoin ETFs now hold over 90% of the daily trading volume market share for ETFs offering bitcoin exposure, while bitcoin futures ETFs claim just 10% of the market share. The success of U.S. spot Bitcoin ETFs has exceeded expectations, with inflows approaching what was anticipated for the first year, and potential for further increases due to various factors.
Despite a slight slowdown from the record-breaking inflows earlier this month, cryptocurrency funds received $598 million last week, with most of the cash going into Bitcoin exchange-traded funds (ETFs) such as BlackRock’s iShares ETF and Fidelity’s Wise Origin Bitcoin Trust. The approval of 10 spot Bitcoin ETFs by the Securities and Exchange Commission has driven interest in derivative products, pushing the price of Bitcoin up. While Grayscale's new ETF experienced significant outflows, overall investor interest in ETFs remains strong, with rumors of significant buying. Additionally, Ethereum, Chainlink, and XRP funds also saw inflows, and Bitcoin's price has reached a high not seen since 2021, trading at $53,418 per coin.
Digital-asset investment products saw inflows of nearly $600 million last week, with year-to-date inflows exceeding $5.7 billion, driven by the new U.S. spot Bitcoin ETFs. Funds from asset managers like Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares, and 21Shares registered their fourth consecutive week of inflows. Bitcoin-based funds led the inflows, while Ether, Chainlink, and XRP investment products also saw significant inflows. However, Solana investment products witnessed outflows due to the network's recent downtime. Additionally, blockchain equities saw continued outflows, indicating caution among equity investors.
Analysts note increased inflows into bitcoin exchange-traded funds (ETFs) and products, potentially posing a long-term threat to gold's status as the primary store-of-value. Data shows substantial net flows into global bitcoin ETFs, particularly in the U.S., while gold experiences net negative flows. This trend reinforces confidence in bitcoin's dual role as a 'risk-on' investment and a safe-haven asset, with expectations that bitcoin may disrupt gold as the prime store-of-value in the future.
Bitcoin fund inflows have surpassed those of traditional gold funds, with Bitcoin spiking to $52,000 this week. Analysts note that Bitcoin flows have stabilized and are on the rise again, potentially surpassing prior highs, while gold funds have seen a steady decline. The comparison between the two assets raises questions about their effectiveness as inflation hedges, but Bitcoin is currently showing strength in the market.