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Bitcoin Hits Record High: ETFs in Focus

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Bitcoin recently rose above $124,000, hitting a fresh record as institutional buying and expectations of looser monetary policy in the United States fueled the rally. The world’s largest cryptocurrency has climbed about 30% so far this year and soared 60% from April’s market lows.

Institutional Inflows and Corporate Adoption 

A key driver of this rally has been inflows into spot exchange-traded funds and corporate purchases of bitcoin. Several public companies have followed the strategy of software-firm-turned-bitcoin-giant MicroStrategy (MSTR - Free Report) , adding bitcoin to their balance sheets as a strategic reserve asset.

401(k) Crypto Access Could Expand Retail Participation

The Trump administration’s pro-crypto stance is another key driver. Last week, President Trump issued an executive order directing the Labor Department to explore allowing 401(k) retirement plans to hold cryptocurrencies and other alternative assets—a move that could boost retail access to bitcoin.

Fed Rate Cut Bets

Bitcoin is viewed as a risk-on asset. Expectations of a Federal Reserve interest rate cut in September, hence, boosted prices of most cryptocurrencies along with equities. Market watchers also anticipate Trump’s next Fed chair appointment will favor looser monetary policy, further boosting risk-on assets like bitcoin.

Ethereum Nears All-Time High

Ethereum also saw strong gains on Aug. 13, 2025, with prices rising nearly 6% to above $4,700— ust shy of its 2021 record highs. Ether has risen more than 50% since the GENIUS Act was passed, setting rules for the stablecoin industry.

Companies are increasingly adding ether to their reserves in order to gain exposure to blockchain infrastructure powering decentralized finance (DeFi) and stablecoins. This week, ethereum-focused treasury firm Bitmine Immersion Technologies (BMNR) announced plans to sell up to $20 billion in stock to expand its ether holdings.

Regulatory Clarity Boosts Market Confidence

The U.S. Securities and Exchange Commission’s launch of “Project Crypto,” an initiative to modernize the agency and clarify digital asset rules, has further strengthened investor sentiment. Fundstrat forecasts ETH could rise as high as $15,000 by year-end, as quoted on Yahoo Finance.

Bitcoin ETFs in Focus

Against this backdrop, one can invest in Bitcoin-based exchange-traded funds (ETFs). These are Grayscale Bitcoin Trust ETF (GBTC - Free Report) , iShares Bitcoin Trust (IBIT - Free Report) , Fidelity Wise Origin Bitcoin Trust (FBTC - Free Report) , ARK 21Shares Bitcoin ETF (ARKB - Free Report) and Bitwise Bitcoin ETF (BITB - Free Report) .

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