Bitcoin Attracts $732 Billion in New Capital as Institutional Investment Products Proliferate

Institutional Capital Drives Historic Bitcoin Cycle

Bitcoin has attracted more than $732 billion in net new capital since the 2022 cycle low, marking a structural transformation in the cryptocurrency's market depth and investor base, according to research by Glassnode and Fanara Digital^[2].

"The 2022–2025 cycle alone has attracted more capital than all previous cycles combined," the report stated, pushing Bitcoin's realized cap to approximately $1.1 trillion^[2]. During this period, the spot price surged over 690% from $16,000 to reach an all-time high of $126,000 on October 6^[2].

The unprecedented capital inflows reflect the "profound impact of institutional adoption and the emergence of regulated investment vehicles, such as spot ETFs," according to the research^[2]. This represents a fundamental shift in Bitcoin's market structure, moving beyond retail speculation toward institutional-grade investment infrastructure.

New Bitcoin-Denominated Investment Products Launch

Further and 3iQ have launched the Further x 3iQ Alpha Digital Fund, a $100 million fund featuring a unique Bitcoin share class that allows qualifying investors to subscribe in BTC and receive returns in the same denomination^[1].

The share class was anchored by a substantial in-kind contribution from an unidentified Abu Dhabi-based family office, providing participants with exposure designed to steadily increase Bitcoin holdings while maintaining long-term exposure to the asset^[1].

Founded in 2012, 3iQ focuses on regulated products and services tailored for institutional and professional investors seeking exposure to digital assets within traditional compliance frameworks^[1]. The company has been expanding its institutional crypto offering through infrastructure including its Digital Assets Managed Account Platform^[1].

Further operates as a UAE-based investment platform providing access to regulated opportunities across venture capital, structured products and digital assets^[1].

Growing Competition in Bitcoin Yield Products

The new fund comes as more players offer investors routes into crypto markets. In April, Coinbase announced plans to launch the Coinbase Bitcoin Yield Fund to give institutional investors outside the United States a way to earn returns on Bitcoin holdings^[1].

The proliferation of such products underscores the maturation of Bitcoin's institutional infrastructure, with firms competing to offer sophisticated yield-generating strategies within regulated frameworks.

Market Tests Key Resistance Levels

Despite the historic capital inflows, Bitcoin's recent sell-off saw it draw down as much as 36% from its all-time high, sparking concerns about market momentum^[2]. Data from Cointelegraph Markets Pro and TradingView showed BTC trading below an area of high ask liquidity^[2].

"BTC faced a strong rejection at $93K last week, but as price attempts to break through this level again today, we're seeing large short-liquidation clusters forming," Glassnode said in an X post on Wednesday^[2]. The firm noted that "short liquidations can act as fuel for upside, as forced buyers amplify momentum."^[2]

Analyst Daan Crypto Trades identified "local horizontal resistance" above $93,000, suggesting that flipping this area into a new support zone was key to propelling the BTC/USD pair to $98,000^[2].

The magnitude of capital inflows throughout the current cycle, combined with the continued launch of institutional investment products, underscores Bitcoin's evolution from a speculative asset to an established component of institutional portfolios.