Spot Bitcoin ETFs Drive Renewed Institutional Demand as Crypto Market Capitalization Surpasses $4 Trillion

The cryptocurrency market has once again eclipsed the $4 trillion valuation threshold, fueled by robust institutional inflows into spot Bitcoin exchange-traded funds (ETFs). These financial instruments have demonstrated significant investor appetite, reflecting growing confidence in digital asset adoption. Concurrently, spot Ether ETFs have showcased a notable reversal in capital movement. As of Thursday, these products registered net inflows exceeding $230 million, marking a decisive recovery from the prior week’s substantial outflows, which approached $800 million. This shift underscores renewed optimism surrounding Ethereum-based investment vehicles amid evolving regulatory clarity and market maturation. Analysts attribute the bullish momentum to macroeconomic factors, including inflationary hedging strategies and increasing corporate treasury allocations to cryptocurrencies. The resurgence in ETF activity signals strengthening market foundations and highlights the critical role of regulated products in bridging traditional finance with digital assets. As liquidity and participation expand, these developments may further solidify cryptocurrency’s position within global financial portfolios.