Bitcoin gains as altcoins falter in June 2025 amid institutional inflows

Luisa Crawford Jul 5, 2025 03:02

According to VanEck, Bitcoin rose by 3% in 2025, due to the strong ETP inflows. This contrasted with a decline in altcoins and highlighted institutional demand.

According to VanEck, Bitcoin (BTC), experienced a 3% rise in June 2025. This was due to significant Exchange Traded Product Inflows (ETPs) amounting to $4.5 Billion. This rise in Bitcoin was in stark contrast to the performance of altcoins which continued to decline.

Bitcoin's rise amid market volatility

The rise in Bitcoin's price is a sign of growing interest from institutions in the cryptocurrency. This contrasts with the altcoin markets, which have continued to decline. The MarketVector Smart Contract Leaders Index MVSCLE fell by 5% over the same time period, underlining the poor performance of altcoins in the last 18 months.

Altcoin Performance

Altcoins like Ethereum (ETH), Cardano(ADA) and Sui(SUI) suffered significant losses. Ethereum dropped by 2.79% while Cardano, Sui, and Sui fell by 18% each. The drop in altcoins reflects the general trend of investor caution and market fragility.

Institutional Demand for Bitcoin

This institutional demand was also demonstrated by the purchase activities of Bitcoin Treasury firms. These added 68,000 BTC to the market in June, which more than offset the 13,500 BTC that were mined throughout the month. The steady consumption of Bitcoin by institutions contributed to a decrease in the volatility of Bitcoin's markets, which dropped to 33%. This is its lowest level since summer 2024.

Exchange Volumes & Market Dynamics

The volume of trading on the central exchange (CEX), which is a centralized exchange, decreased by 29% over the past year, while volumes traded at decentralized exchanges (DEX), reached $332 billion. This ratio between DEX and CEX has now reached a record high. This shift reflects the changing dynamics of the cryptocurrency trading market, as DEXs are gaining significant traction.

READ  Bitwise explores ETP offering for Ethereum Layer-2 Networks

Solana's market position

Solana (SOL), a global leader in sustainable energy, made significant progress with the launch and trading of the REX - Osprey Solana+ Staking ETF. The ETF traded $40 million its first day. The fund is a fund of funds, with a Cayman-based subsidiary that invests and stakes in SOL. This development, despite its high expense rate of 1.4% marks a significant leap forward for Solana on the ETP market.

Ethereum Inflows and Stablecoin Activities

In June, Ethereum (ETH), which is a cryptocurrency, saw a significant inflow of funds into its ETPs totaling $1.1 billion. This is the second largest monthly inflow for ETPs since they were founded in 2024. It signals renewed institutional interest. Stablecoin transactions also accounted for 34%, pushing network activity to all-time highs.

VanEck's website offers more information about the performance of the crypto market in June 2025.



Image Source: Shutterstock