Institutional Money Returns to Crypto as Bitcoin ETFs Draw $10B

CoinDesk reports that institutional interest is rotating back into digital assets, though this cycle looks markedly different from the last. Wall Street is paying closer attention to prediction markets, U.S. spot Bitcoin exchange-traded funds (ETFs) are absorbing another round of sizable inflows, and Andreessen Horowitz's crypto arm is scaling up capital for a new multibillion-dollar vehicle. At the same time, banks are steadily ramping up tokenized financial infrastructure. Taken together, this week's Crypto Biz signals a broader industry shift: crypto firms are moving beyond retail-first offerings and increasingly building for asset managers, banks, hedge funds, and other institutions seeking regulated ways to access digital assets. Prediction markets vie for institutional capital Bernstein analysts say institutional interest in prediction markets picked up after Kalshi completed what they described as the sector's first customized institutional block trade. The transaction involved a bespoke contract linked to California carbon allowance auctions and was executed with liquidity support from Jump Trading. In a recent client note, Bernstein characterized the deal as an important milestone in the transition from retail-driven speculation toward more mature financial products. Institutions are increasingly considering event-linked contracts tied to macro policy, elections, and geopolitics as potential hedging tools. The report also points to regulated market structure as a growing differentiator. Kalshi operates within the U.S. regulatory framework, while many decentralized rivals expand primarily via native crypto platforms outside traditional financial channels. Bernstein argues that broader institutional participation could ultimately push prediction-market volumes into the trillions of dollars. Bitcoin ETFs post nearly $1B in inflows as BTC returns to $80,000 U.S. spot Bitcoin ETFs recorded close to $1 billion in net inflows, while Bitcoin (BTC) moved back above $80,000, underscoring renewed institutional demand for crypto exposure. Data from SoSoValue shows the move as one of the strongest single-day inflow readings for the ETF category in recent months, alongside broader strength across digital assets. Analysts say the demand reflects firmer investor sentiment and continued institutional accumulation via regulated investment wrappers. The latest inflows extend April's momentum, when Bitcoin ETFs brought in $1.97 billion. a16z crypto raises $2B for a new fund Andreessen Horowitz's crypto venture unit, a16z crypto, raised $2 billion for a new crypto-focused investment fund, one of the largest venture commitments to the sector in recent years. The fund will target crypto startups across blockchain infrastructure, Web3 applications, and decentralized finance. The raise comes as venture activity shows early signs of recovery after an extended slowdown in digital-asset markets. Fundraising remains well below 2021 peaks, but capital continues to back early-stage teams building foundational infrastructure. a16z has remained among the most influential players during downturns, with investments spanning gaming, stablecoins, developer tools, and decentralized networks. Tennessee Bankers Association taps Stablecore for digital-asset services The Tennessee Bankers Association selected Stablecore as its preferred provider of digital-asset infrastructure, enabling roughly 175 member banks to access crypto-related banking services. The partnership is aimed at helping banks integrate stablecoins, tokenized deposits, and other blockchain-based payment tools into their operations. Stablecore offers backend infrastructure designed to let banks roll out digital-asset services without building a full in-house crypto technology stack. The company says its platform supports tokenized assets, stablecoin features, and compliance integrations for regulated institutions. The agreement reflects rising interest among regional and community banks in blockchain payments and tokenization as traditional finance expands its footprint in digital-asset infrastructure. Crypto Biz is a weekly look at the business forces shaping blockchain and cryptocurrency, delivered every Thursday.