Markets have moved green this week, with a strong showing from the big players – every coin in the top ten by market cap is flashing seven-day gains. Despite geopolitical uncertainty still lingering in the background, it appears institutions and investors are moving on from the fear we saw in June.
Like many times before, spot ETFs are again having a major say in market movements.
BlackRock’s IBIT overtakes S&P 500 offering in fees
The big ETF news of the week came from BlackRock, whose spot Bitcoin product (IBIT) has repeatedly smashed records since its inception.
In a headline that not even the most copium-fuelled investors would’ve predicted 12 months ago, BlackRock’s IBIT has leapfrogged its S&P 500 product in annual fees.
With $75 billion USD worth of assets under management and an expense ratio of 0.25%, IBIT now rakes in about $187.2 million USD in annual fees. This is remarkably, $100k USD more than BlackRock’s S&P 500 ETF – one of Wall Street’s most iconic offerings.
Let’s not ignore the fine print here. The S&P 500 ETF boasts more than eight times IBIT’s AUM, with the difference in fee revenue largely coming from IBIT’s significantly higher expense ratio.
That said, it shouldn’t be understated just how impressive IBIT’s first 18 months on the shelf have been. For a spot Bitcoin ETF product to be coming close to an S&P 500 in fee revenue – considering the latter is celebrating its 25th birthday – is pretty extraordinary.
It’s not a changing of the guard, but the footsteps are getting louder.
Demand moves from strength to strength
Last week we saw Bitcoin ETFs nail five consecutive days of inflows. This is becoming less and less of an anomaly, with this week’s data singing a similar tune.
July 1st is now the only date within the past fortnight displaying red, with Farside data reporting nearly 800 million USD being poured into spot BTC ETFs in the last two days alone.
To make these numbers even prettier – IBIT flows haven’t even been added into the mix yet.
Spot ETFs driving Bitcoin to new heights is the same old story – but it’s hardly getting old.
The continued demand, paired with fear easing in the market, has pushed BTC back to its USD $110k resistance level. We’ve re-tested this pain point twice in the past 48 hours, with the market rejecting its advances both times.
But if Wall Street keeps flexing, Bitcoin’s got every shot at breaking through this resistance and eyeing fresh highs.
Solana ETF introduces staking
Adding to the rush of ETF news, Rex–Osprey’s proposed Solana ETF, SSK, will be the first of its kind to deliver staking rewards to holders.
To support staking, the ETF won’t technically be a spot ETF like its Bitcoin and Ethereum counterparts. Rather, Rex–Osprey structured the fund as an investment company to meet obligations while ensuring investors receive yield.
Simply, this means all of the fund’s assets have to be locked down by a qualified custodian. In this case, Anchorage Digital is holding the keys.
‘Spot’ crypto ETFs not supporting staking has been a major criticism of the altcoin ETF rush slated for the second half of 2025.
But if products like SSK become the norm, rather than the exception, could we see the altcoin market catch fire the way Bitcoin did once ETFs took off?
We’ve seen it before – but what’s driving the latest institutional hype and ETF buzz?
Chart of the week: M2 hits all-time highs
This week we’ve seen a breakout in global money supply (M2), with circulating cash reaching a new all-time high.
Historically, rising M2 has correlated with an increase in Bitcoin (which we can see on the graph above).
This could be the cause of the crypto market’s latest bullish push. The relationship is simple – more money floating around, more money investors and institutions are potentially willing to flash on risk-on assets like BTC.
And with M2 showing signs of upside – we could just be getting started.
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