Recent trends in the cryptocurrency market highlight a surge in demand for Bitcoin ETFs, driven by institutional investors eager to capitalize on market momentum. As “Uptober” continues, inflows into Bitcoin spot ETFs have reached notable levels, reflecting growing confidence in digital assets amidst ongoing geopolitical and macroeconomic concerns. This movement underscores the increasing acceptance of crypto investment products within traditional finance, signaling a pivotal moment for the broader adoption of blockchain-based assets.
- Bitcoin ETF inflows surged to $2.71 billion in the week, marking a strong institutional interest in October.
- Total assets under management for Bitcoin ETFs now stand at nearly $159 billion, representing about 7% of Bitcoin’s market cap.
- Monday saw the highest single-day inflow at $1.21 billion, the second-largest since launch.
- Market jitters caused a minor outflow of $4.5 million amid geopolitical tensions involving potential U.S.-China trade tariffs.
- Over 30 crypto ETF applications have been filed with the SEC in just October, indicating potential for further market expansion.
Strong Weekly Inflows Signal Institutional Confidence
US spot Bitcoin ETFs experienced another remarkable week, with weekly inflows totaling $2.71 billion, reflecting robust institutional appetite for digital assets. According to data from SoSoValue, the total assets under management (AUM) now reach approximately $159 billion, accounting for nearly 7% of Bitcoin’s overall market capitalization.
Vincent Liu, CIO at Kronos Research, remarked, “Capital keeps flowing into BTC as investors reaffirm their belief in digital gold. Liquidity is steadily building, indicating strong market momentum.”
The peak inflow day was Monday, when ETF funds saw a staggering $1.21 billion in net deposits—the second-highest daily total since their inception. Tuesday continued the trend with an additional $875.61 million inflow, further affirming investor confidence.
Related: DeFi booming as $11B Bitcoin whale stirs ‘Uptober’ hopes: Finance Redefined
Market Volatility Causes Slight ETF Outflows
On Friday, Bitcoin ETFs saw a modest net outflow of $4.5 million amid heightened market uncertainty. The trigger appears to be President Donald Trump’s announcement of plans to impose a 100% tariff on Chinese imports, intensifying geopolitical concerns.
Despite this setback, industry giant BlackRock’s IBIT led inflows with $74.2 million on a single day and now manages a total of $65.26 billion. Conversely, Fidelity’s FBTC and Grayscale’s GBTC recorded outflows of $10.18 million and $19.21 million, respectively.
Liu commented, “Trump’s tariff threat is likely a negotiation tactic rather than a serious policy shift. Markets might react briefly, but savvy investors recognize the macroeconomic noise and remain committed to their long-term conviction.”
Related: Ether ETF inflows, explained: What they mean for traders
Crypto ETF Applications Surge, Signaling Market Maturity
Over the past two months, an impressive 31 new crypto ETF applications have been submitted to the U.S. Securities and Exchange Commission (SEC), with 21 filed during just the first week of October. This influx suggests a potential opening of the floodgates for cryptocurrency ETFs in the United States.
Market analysts describe this as a significant step toward mainstream acceptance, with some noting nearly 100 crypto-related products awaiting SEC approval as of late August. Bloomberg’s James Seyffart and others believe this momentum could accelerate institutional adoption and boost the overall crypto asset ecosystem.
Related: EU’s privacy-killing Chat Control bill delayed — but fight isn’t over
