Bitcoin ETF Inflows Explode $3.24 Billion – First Signal for Uptober Acceleration
The crypto market kicked off October on a high note as US spot Bitcoin ETFs recorded a whopping $3.24 billion in inflows in just one week, marking their second-best performance since the products launched in January 2024.
According to data from SoSoValue, this inflow is just shy of the record $3.38 billion set in late November 2024, suggesting that institutional inflows are making a strong comeback after a correction.
A Spectacular Reversal of Institutional Inflows
After a $902 million outflow the week before, inflows suddenly reversed as investors expected the Fed to continue cutting interest rates in the fourth quarter. This shift boosted the positive sentiment towards risk assets, with Bitcoin at the center of it.
Bitcoin has surged past $123,000, its highest level in six weeks, and data from Blockworks shows that Bitcoin ETFs have seen inflows totaling $2.2 billion for four consecutive days.
Experts say this is the start of a new institutional accumulation cycle, with large investors viewing ETFs as a safe, transparent, and regulated way to access Bitcoin.
BlackRock Leads the Race – The Power of Concentration Is Becoming Clear
While capital flows are strong again, BlackRock Bitcoin ETF (IBIT) continues to dominate with more than 700,000 BTC held, equivalent to $75.5 billion in assets under management, accounting for more than half of the total value of Bitcoin ETFs in the US.
Notably, the fund generates more than $187 million in annual fees, surpassing the revenue of BlackRock S&P 500 ETF, despite having nearly nine times smaller assets.
This suggests that Bitcoin ETFs are becoming a new pillar of returns in traditional investment portfolios.
“Uptober” kicks off – Seasonal effects add momentum
October has been jokingly dubbed “Uptober” by the crypto community, with historical data from CoinGlass showing Bitcoin averaging around 20% returns this month.
The following months are also promising:
November: Average return 46%.
December: Average return 4%.
Matt Mena from 21Shares commented:
“If the Fed does ease further, institutional money will flow in more strongly, and Bitcoin could head towards the $140,000-$150,000 range before 2025 ends.”
ETF Inflows – A New Indicator of Market Health
Bitcoin ETFs are becoming a key sentiment gauge for the digital asset market, with daily trading volumes ranging from $5–$10 billion. Institutional investors such as pension funds, sovereign wealth funds, and banks are gradually increasing the proportion of Bitcoin in their alternative portfolio allocations.
According to JPMorgan, Bitcoin’s current valuation is still significantly lower than gold, adjusted for volatility, and could reach $165,000 by the end of 2025.
Q4 Outlook: A New Institutional Wave Is Forming
Analysts say the acceleration of Bitcoin ETFs is the clearest manifestation of the “tacit agreement” between traditional finance (TradFi) and the crypto market.
As institutions control a large amount of BTC supply through ETFs, the price discovery mechanism will gradually shift to regulated exchanges.
Additionally, with the crypto market capitalization approaching $5 trillion, the growing institutional participation is helping to stabilize volatility and pave the way for a period of sustained growth.
Conclusion
The $3.24 billion inflow into Bitcoin ETFs in the first week of October is a clear sign that institutional confidence is returning strongly.
If the Fed continues to ease and capital flows continue, Bitcoin could enter one of its strongest growth quarters in history – with ETFs acting as a bridge between Wall Street and the blockchain world.