In a remarkable turn of events, US-listed spot Bitcoin and Ethereum exchange-traded funds (ETFs) have sparked renewed investor enthusiasm, amassing over $4.5 billion in net inflows last week. This surge follows a brief spell of outflows and sets a positive tone for October, a month often referred to as “Uptober” due to its historical bullish performance in the cryptocurrency market.
Recent data from SoSo Value highlights that Bitcoin ETFs alone attracted approximately $3.2 billion in net inflows, ranking as the second-largest weekly total on record, just shy of November 2024’s peak at $3.37 billion. During this dynamic trading period, ETF volumes soared to around $26 billion, indicating heightened investor engagement and a blossoming confidence that an accumulation phase may be on the horizon.
Leading the charge, BlackRock’s iShares Bitcoin Trust (IBIT) brought in a staggering $1.78 billion, followed closely by Fidelity’s Bitcoin ETF (FBTC), which saw inflows of $692 million. Additional contributions came from Ark 21Shares with $254 million and Bitwise, which captured $212 million. This influx reflects a growing conviction among institutional investors and a reinvigorated interest from retail investors eager to gain exposure to Bitcoin through regulated investment vehicles.
Ethereum ETFs similarly mirrored this momentum, securing $1.29 billion in inflows and generating nearly $10 billion in trading volume within the week. Among these, BlackRock’s ETHA fund led with inflows of $687 million, followed by Fidelity’s $305 million, Grayscale with $175 million, and Bitwise at $83 million. Such figures indicate a strategic positioning by investors looking for opportunities across the broader market rather than concentrating solely on individual assets.
The synchronized inflows into both Bitcoin and Ethereum ETFs have made last week one of the most bustling trading periods in recent memory, signaling a potential rebound in institutional portfolios as they return to digital assets in anticipation of early upside potential amid stabilizing macroeconomic conditions. This resurgence of optimism has propelled Bitcoin to an impressive all-time high, surpassing $125,000, reinforcing the notion that the demand driven by ETFs may extend beyond mere short-term speculation, potentially establishing a strong foundation for a new market cycle.
According to crypto research firm 10x Research, the volume of these inflows is unprecedented. Furthermore, subtle shifts in institutional allocation strategies are indicative of deeper structural support compared to prior rallies. The research notes, “Behind the scenes, billions of dollars in ETF inflows and a quiet shift in institutional behavior suggest that this breakout may have deeper roots. Even regulators are adding fuel to the fire, with new tax guidance that caught corporate treasuries off guard.”
As the cryptocurrency market enters this pivotal phase, all eyes are on how these developments unfold and whether the upward momentum can be sustained in the months ahead.
