Bitcoin and cryptocurrency-linked ETFs are soaring to unprecedented heights in assets under management (AUM), even as the broader economic climate, fraught with geopolitical tensions and market volatility, threatens to cast a shadow over this growth. As of July 9, 2025, Bitcoin is holding steady near $108,700, largely unperturbed by the turbulence in traditional markets following U.S. President Donald Trump’s announcement of potential tariff hikes on European imports. This resilience has many in the crypto community wondering just how insulated these digital assets have become from global policy upheavals. For more on how political tensions are impacting the crypto market, see Bitcoin Climbs as Trump’s $5 Trillion Bill Sparks Market Volatility and Political Tensions.
Crypto ETFs Hit Record AUM
Despite the macroeconomic storm, cryptocurrency ETFs, including those tracking Bitcoin, Ether, Solana, and XRP, have reached an all-time high in AUM, now standing at a staggering $188 billion. According to CoinShares, the crypto ETF market has seen its 12th consecutive week of inflows, with nearly $1 billion pouring into funds just last week. Bitcoin products led the pack with $790 million in new investments, followed by Ether with $226 million, Solana with $22 million, and XRP with $11 million. This trend raises questions about the future trajectory of these ETFs, as discussed in Will Solana, XRP, Dogecoin and Other Crypto ETFs Take Off?.
Han Xu, Director at HashKey Capital, expressed confidence in the market’s resilience. “Bitcoin’s slight price drop from Trump’s tariff plans showcases the digital asset’s resilient nature and long-term investor confidence,” Xu noted in a Telegram message. This optimism reflects a broader sentiment that, despite short-term volatility, the fundamentals of Bitcoin and its peers remain robust.
Signs of a Market Pause?
However, not everything is rosy. Some experts suggest that the market’s buoyancy might be masking underlying weaknesses. The Block has highlighted a noticeable decline in Bitcoin’s on-chain activity and implied volatility, reaching their lowest points in almost two years. Glassnode referred to this as a “summer lull,” citing dwindling trading volumes and a concentration of unrealized gains among long-term holders as potential precursors to a sharper market correction.
“Buyers are quickly letting off steam,” observed Alex Kuptsikevich from FxPro. “BTC keeps getting pushed down near $110K, and while the 50-day moving average is attracting dip buyers, sellers are just as active.” This mixed sentiment is reflected in the overall market capitalization, which, despite being up 1.8% on the week, saw a 0.6% dip in the past 24 hours to $3.35 trillion. Kuptsikevich added, “Capital continues to move away from the 200-day moving average, which shows the market still leans bullish. But any shift in tone could lead to quick profit-taking.”
A Balancing Act
The seeming contradiction—rising ETF inflows amidst potential market fatigue—paints a complex picture of the current crypto landscape. Some analysts speculate that the influx of institutional money into ETFs could be insulating the crypto market from broader economic shocks. However, this raises questions about sustainability, especially if the broader “risk-on” sentiment wavers.
As we navigate the second half of 2025, the crypto market appears to be in a delicate balance. While the current trajectory suggests continued growth and stability, the specter of volatility looms large. Will the influx of capital continue to buoy these digital assets, or are we on the cusp of a market reevaluation?
For now, stakeholders remain cautiously optimistic, but with a watchful eye on potential shifts in investor sentiment. As the summer progresses, the crypto market’s resilience will likely be tested, revealing whether these record highs are just a temporary peak or the foundation for new growth.
Source
This article is based on: Bitcoin, Ether, Solana, XRP ETFs See Record AUM as Traders Warn of ‘Summer Lull’
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
