US Bitcoin Dominance Hits New High Fueled by Wall Street and ETFs

Key Takeaways

• Despite a 27% drop from January highs, BTC’s market share surged.
• Public companies added nearly 100,000 BTC in the first quarter, pushing holdings to over $56.4 billion.
• Bitcoin is increasingly seen as a core macro asset, but its growing correlation with equities challenges its “digital gold” status.

Bitcoin continues solidifying its position within mainstream finance as institutional interest grows and capital flows increasingly favor large-cap digital assets.

Recent data shows a marked shift away from speculative tokens, with investors gravitating toward Bitcoin as a more stable component in diversified portfolios.

This trend comes during rising macroeconomic uncertainty, signaling a broader reconfiguration of market priorities.

U.S. Bitcoin Dominance Hits New High

Bitcoin’s dominance climbed to 62.2%, the highest since February 2021, despite a 26.9% drop from its January market cap peak. This highlights capital flight from speculative tokens to BTC amid rising volatility.

Institutions drove this shift , favoring liquid, regulated large-cap assets. XRP stood out, gaining 0.4% after the SEC’s case was dropped, and RLUSD’s market cap soared 323% to $245 million, with $10 billion in trading volume.

In contrast, Ether plunged by 45%, with $228 million in ETF outflows versus $1 billion in Bitcoin ETF inflows. The ETH/BTC ratio hit 0.022—its lowest since May 2020.

Institutions bought nearly 100,000 BTC in the first quarter, up by 35%, bringing public company holdings to 689,059 BTC , equal to $56.4 billion.

The launch of the U.S. Strategic Bitcoin Reserve and Treasury-backed Digital Asset Stockpile reinforced Bitcoin’s policy-level legitimacy.

Looking ahead, market sentiment has improved post-tariff pause. ETF optimism is high: 40 altcoin ETF applications were filed, with Solana and XRP leading. Solana futures debuting on CME adds to the case for institutional altcoin exposure.

Bitcoin ETFs Attract $1 Billion in Inflows

As said, Bitcoin ETFs attracted nearly $1 billion in inflows this week—one of the most significant surges since January—bringing total assets under management to $108.16 billion.

According to Farside Investors , ARK 21Shares Bitcoin ETF led with $267 million in net inflows, while BlackRock’s iShares Bitcoin Trust (IBIT) followed with $193.5 million. The spike in ARK‘s inflows marks a shift from IBIT’s usual dominance.

This momentum follows a volatile stretch, with $27.5 billion in ETF outflows between January 20 and April 8. This week’s reversal may signal a new phase.

The surge coincides with the Trump administration’s pro-crypto stance. Since January, the administration has overhauled regulations and launched a strategic Bitcoin reserve, helping drive ETF popularity.

A more crypto-friendly Securities and Exchange Commission (SEC) is also seen as a key factor.

ETF Demand Fuels Bullish Bitcoin Outlook, But Risks Remain

Bitcoin’s recent push past $94,000 has reignited bullish sentiment, thanks partly to the strongest daily inflows into U.S. spot Bitcoin ETFs since January.

This resurgence aligns with a broader wave of demand from crypto-native platforms like Coinbase and Kraken, and major corporations now hold nearly $65 billion in BTC reserves.

Strategists from Standard Chartered and Intellectia AI see this institutional embrace and the accelerated adoption of ETFs as major tailwinds.

Investors increasingly view Bitcoin as a macro hedge, especially amid rising inflation and economic uncertainty. But while the current trend looks promising, the outlook isn’t bulletproof.

Geopolitical shocks or sudden regulatory pivots could easily reverse the momentum.

Interestingly, investor psychology is shifting. Assets like gold and Bitcoin are not seen as fringe hedges but core portfolio components. Yet recent data complicates that narrative.

Bitcoin’s correlation with gold has weakened, while its ties to equities have grown stronger, suggesting it may behave more like a risk asset than a safe haven.