Paradigm Shift in the Crypto Market in Mid-2025
The year 2025 is witnessing a historic and multi-layered transformation in the US spot crypto ETF market. The strong capital flows seen in Bitcoin and Ethereum ETFs, important laws on the regulatory front, and the institutionalization journey of the market provide clear signals about the future of the sector. In particular, the change of leadership in US regulatory institutions and the more moderate regulatory atmosphere have begun to completely reshape the position of crypto assets in the financial system.
Strong Institutional Inflows in Bitcoin and Ethereum ETFs
Serious fluctuations were observed in Bitcoin and Ethereum ETFs in the first quarter of 2025. While Bitcoin spot ETFs experienced major outflows of $838 million on a weekly basis in March, Ethereum ETFs recorded a net outflow of $178 million in the same period. It was observed that US interest rate policies, geopolitical uncertainties and regulatory uncertainties were effective in the background of these outbursts.
(Total Bitcoin Spot ETF Net Inflow)
However, the direction of the market has changed dramatically since the end of April. While net flow in Bitcoin ETFs exceeded $ 3 billion in the week of April 25, there was a strong inflow of $ 157 million on the Ethereum side in the same week. This momentum grew even stronger in May and June. Although there were short-term outflows ($ 128 million) in Bitcoin ETFs as of June 6, record weekly inflows of $ 1.02 billion and $ 1.39 billion were immediately realized. Ethereum ETFs also reached a peak in the week of June 13, with net inflows of $528 million. In total, Bitcoin ETFs recorded a cumulative net inflow of $46.6 billion, while Ethereum ETFs recorded $3.9 billion.
(Total Ethereum Spot ETF Net Inflow)
The increasing interest of institutional investors in ETF products positions Bitcoin as a digital reserve tool against macro risks, while reflecting the potential of Ethereum to be integrated into more financial applications and the stablecoin ecosystem due to its infrastructural role.
SEC Leadership Change and Softening Attitude to Crypto
Another critical development in 2025 was the appointment of Paul Atkins to the head of the SEC. Atkins quickly abandoned Gary Gensler’s harsh approach and began to adopt a more innovative and market-friendly approach. The SEC withdrew many previous regulations that included DeFi protocols in the definition of “exchange” and required investment firms to hold client assets only with “qualified custodian” institutions. Instead, a new regulatory framework called the “innovation exemption” was developed.
The SEC’s policy change triggered a major wave not only in spot Bitcoin and Ethereum ETFs, but also in altcoin ETF applications. In the first half of 2025, more than 30 altcoin ETF applications were filed with the SEC. With applications from big names like VanEck (BNB, Avalanche), WisdomTree and Franklin Templeton (XRP), REX-Osprey (Trump Coin and Solana) coming to the fore, expectations of “Altcoin Summer” have found a wide echo in financial markets. According to the Bloomberg Terminal snapshot, the chances of altcoin ETFs getting approval are generally good, with the approval change rate for 10 ETFs estimated at 60% or above.
Altcoin ETF Wave: Expectations and Realities
With the increase in altcoin ETF applications, the SEC is expected to take bolder steps in the approval processes in the second half of the market. According to Bloomberg ETF analysts, Litecoin and Solana ETFs are among the candidates closest to approval. The fact that the SEC staff has started to approach the applications positively, especially on the issues of staking and “in-kind redemption”, is considered a promising signal for altcoin projects.
However, it seems that it will be difficult for altcoin ETFs to reach institutional volumes as large as Bitcoin and Ethereum. The principle of “demand decreases as you move away from Bitcoin” is still valid. However, expectations that a new expansionary bull cycle has begun after the long-lasting crypto bear market continue to be expressed strongly.
Market Performance
The increase in spot ETF inflows has created strong support for both Bitcoin and Ethereum prices. While Bitcoin is priced above $ 100,000, Ethereum is consolidating in the $ 2,500–2,700 range. On the Ethereum side, the increasing “call” volume in the options markets and the open position size in the derivatives markets strengthen the possibility of testing the $ 3,000 levels. At the same time, DeFi volumes, Layer-2 projects, and stablecoin usage continue to increase.
(Altcoin dominance excluding BTC and ETH)
However, it should not be forgotten that altcoin dominance is still behind and the Bitcoin season maintains its dominance. Market watchers continue to expect an “altcoin summer,” but it may be some time before major breakthroughs are confirmed.
A New Phase of Institutional Maturity and Regulatory Clarity
The year 2025 represents a critical threshold where institutionalization and regulatory clarity in the U.S. crypto ETF market are rapidly advancing. The massive inflows into Bitcoin and Ethereum ETFs are an indication not only of price action but also of a permanent shift in market structure. On the regulatory front, the GENIUS Act and the SEC’s new approach pave the way for crypto’s full integration with the mainstream financial system.
This momentum is expected to continue to strengthen in the second half of the year with altcoin ETF approvals, staking-based ETFs, and the introduction of new innovative products, while the crypto market has become the central focus not only of individual investors but also of large institutional funds and regulators.
