Bitcoin and Ethereum ETFs See Nearly $900 Million Inflow

Wall Street is betting on crypto again. Bitcoin and Ethereum ETFs just pulled in nearly $900 million in a single day, helping drive Bitcoin above $81,000 and Ethereum past $2,500. Bitcoin funds grabbed the lion's share with $730.8 million, while Ethereum ETFs added $141.4 million to their total holdings.

BlackRock led the charge as usual. Its IBIT fund accounted for over 60 percent of the Bitcoin inflows, while its Ethereum product joined Fidelity in capturing nearly all of the new interest for ETH. This surge in capital effectively pushed through major sell walls, keeping prices climbing despite outside pressure from rising sovereign bond yields.

The massive influx of cash triggered a significant short squeeze. Over $260 million in short positions were liquidated, which added fuel to the fire as those traders were forced to buy back in. Bitcoin futures open interest is now sitting above $57 billion, marking a high point not seen since May.

While the demand is clear, traders should remain cautious. The market has seen wild swings lately, moving from large outflows to huge inflows in just a few days. For this rally to hold, the market needs to see sustained institutional buying rather than just a temporary spike. Keep an eye on ETF data over the next few sessions to see if this trend stays strong.