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Capitalize on Bitcoin's Bull Run With Leveraged ETFs in Crypto Week

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Bitcoin surged past the $120,000 mark for the first time, extending its bullish run as investor sentiment continues to improve. The rally marks a significant breakout from the narrow trading range that had persisted for months, reviving optimism after a period of stagnation. The world’s largest cryptocurrency has now climbed nearly 30% since December and more than doubled in 2024.

As Bitcoin surges to new all-time highs, investors looking to amplify their exposure are increasingly turning to leveraged Bitcoin ETFs. These are 2x Bitcoin Strategy ETF (BITX - Free Report) , ProShares Ultra Bitcoin ETF (BITU - Free Report) , T-Rex 2X Long Bitcoin Daily Target ETF (BTCL - Free Report) and CoinShares Valkyrie Bitcoin Futures Leveraged Strategy ETF (BTFX - Free Report) .

While uncertainty surrounding Trump's political and economic agenda had dampened enthusiasm, broader market risk-on sentiment and a resurgence in equities have helped reignite Bitcoin’s momentum. The rally has been driven by renewed institutional demand, robust spot Bitcoin ETF inflows and growing optimism surrounding global crypto adoption. It reflects broader investor appetite for alternative assets amid a shifting macroeconomic landscape.

We have highlighted the key drivers in detail below:

Strong Institutional Demand & ETF Inflows

Bitcoin has witnessed sustained inflows from institutional investors, driven by increased adoption of spot Bitcoin ETFs in the United States and Europe. According to Trading News, Bitcoin ETFs have gathered $7.1 billion in capital over the past five trading sessions, one of the largest weekly inflows in 2025. Per etf.com, Bitcoin ETFs have accumulated $50.1 billion in total inflows since their launch last year and $14.9 billion so far this year.

Additionally, Trump's business ventures are making waves in the space. According to an SEC filing on Tuesday, Trump Media & Technology Group is preparing to launch a crypto-focused ETF that will invest in multiple tokens, including Bitcoin. Corporations are also ramping up participation in cryptocurrency. Companies like Strategy (MSTR) and GameStop (GME) continue to add bitcoin to their balance sheets. 

The options market also reflects renewed bullish momentum. Open interest, or the number of outstanding contracts on the Deribit exchange, has grown increasingly concentrated around call options at the $115,000 and $120,000 strike levels, indicating continued investor optimism (read: Bitcoin Tops $118K: ETFs to Make the Most of the Rally).

Regulatory Momentum

Investors have been eagerly anticipating further new all-time highs for Bitcoin this year, as corporate treasuries ramp up crypto acquisitions and the United States edges closer to enacting comprehensive digital asset regulations. Dubbed “Crypto Week,” the U.S. House of Representatives will begin deliberating a series of crypto-focused bills on July 14. These proposed laws aim to establish a clearer and more structured regulatory framework for the fast-evolving digital asset industry.

A favorable outcome can accelerate institutional inflows, reinforce Bitcoin’s status as a macro asset and boost confidence in regulatory-compliant crypto platforms. Among the key proposals is the GENIUS Act, which was recently cleared by the Senate. The bill outlines a federal framework for regulating stablecoins.

Earlier this year, the Trump administration approved the creation of a strategic Bitcoin reserve, signaling a notably pro-crypto regulatory stance.

Macroeconomic Tailwinds

The cryptocurrency is increasingly being viewed as a hedge against both inflation and geopolitical uncertainty, especially amid ongoing tensions in Eastern Europe and Asia.

Outlook

Bitcoin’s latest rally underscores a resurgence in investor confidence, particularly from institutional players increasingly seeking exposure to digital assets as a hedge and growth opportunity. With regulatory clarity improving and demand rising, analysts suggest that the crypto bull cycle may still have room to run.

About Leveraged ETFs

Leveraged ETFs offer the potential for magnified returns, provided the sentiments remain bullish. Leveraged ETFs provide multiple exposures (2X or 3X) to the daily performance of the underlying index. These funds employ various investment strategies, such as swaps, futures contracts and other derivative instruments, to accomplish their objectives. However, they come with a high risk.

Since most of these ETFs seek to attain their goals on a daily basis, their performances could vary significantly from the performance of their underlying index or benchmark over a longer period compared with a shorter period (such as weeks, months or years) due to their compounding effect (see: all Leveraged Currency ETFs here). 

Investors should also note that leveraged ETFs involve a greater deal of risk than traditional funds. They are often more costly and can be less tax-efficient, as they can generate capital gains through the use of swaps and other derivative instruments.

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