Investor appetite for crypto assets has surged again, as U.S.-listed spot Bitcoin and Ethereum exchange-traded funds (ETFs) drew more than $4.5 billion in net inflows last week, ending a brief lull and setting a bullish tone for October — a month traders often dub “Uptober” for its history of strong digital asset performance.
According to data from SoSo Value, Bitcoin ETFs accounted for roughly $3.2 billion of the total inflows, marking their second-largest weekly total on record, behind only the $3.37 billion peak of November 2024. The period also saw trading volumes surge to about $26 billion, a sharp uptick that analysts interpret as a sign of renewed institutional participation and growing conviction that an accumulation phase is underway.
BlackRock’s iShares Bitcoin Trust (IBIT) led with $1.78 billion in inflows, followed by Fidelity’s FBTC at $692 million. Ark 21Shares drew $254 million, while Bitwise captured $212 million, signaling that both heavyweight asset managers and emerging ETF providers are benefiting from the wave of capital rotation into regulated crypto vehicles.
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Meanwhile, Ethereum ETFs mirrored the momentum, bringing in $1.29 billion in inflows and generating nearly $10 billion in weekly trading volume. BlackRock’s ETHA dominated with $687 million, followed by Fidelity’s $305 million, Grayscale’s $175 million, and Bitwise’s $83 million.
Broader Market Recovery and Institutional Rotation
The synchronized surge across both Bitcoin and Ethereum ETFs made last week one of the busiest in the history of crypto-linked ETFs. Analysts say the trend reflects a broader market recovery narrative — one that goes beyond short-term trading activity.
The shift is being interpreted as institutional portfolios rotating back into digital assets, aiming to position early in what could become a multi-quarter rally. This move coincides with signs of macroeconomic stabilization, as inflation in the U.S. shows a steady decline and global liquidity improves.
As a result, Bitcoin soared past $125,000, a new all-time high, underscoring how ETF-driven demand is doing more than fueling speculative trades — it’s laying the foundation for a new structural bull cycle.
Crypto research firm 10x Research described the magnitude of these inflows as “unprecedented,” adding that institutional behavior now looks materially different from past cycles.
“Behind the scenes, billions of dollars in ETF inflows and a quiet shift in institutional behavior suggest that this breakout may have deeper roots,” the firm said in a note. “Even regulators are adding fuel to the fire, with new tax guidance that caught corporate treasuries off guard.”
The report’s mention of tax policy changes refers to recent U.S. Treasury guidance clarifying how corporations should report digital asset holdings — a move that, while intended to tighten compliance, also legitimized crypto exposure on balance sheets for a growing number of companies.
Bitcoin ETFs Versus Traditional Funds
In comparative terms, the $4.5 billion pulled into Bitcoin and Ethereum ETFs last week stands out even within the broader U.S. ETF market. Traditional equity ETFs — including S&P 500 and Nasdaq trackers — have seen similar or smaller inflows during weeks of peak activity this year.
By percentage of assets under management (AUM), the inflows into crypto ETFs represent one of the fastest growth rates among all asset classes in 2025, according to Morningstar data. Analysts suggest this pace of capital movement underscores a structural shift in institutional portfolio diversification, where digital assets are no longer seen as fringe alternatives but as core holdings alongside equities and commodities.
Ethereum’s Catch-Up and Institutional Diversification
Ethereum’s inflows also mark a significant inflection point. For much of 2024, institutional ETF interest was almost exclusively concentrated in Bitcoin. But the $1.29 billion influx into Ethereum funds suggests that investors are beginning to broaden their exposure across the crypto spectrum, betting on the next leg of innovation — particularly in decentralized finance (DeFi), tokenized assets, and smart contract applications.
Ethereum’s performance is increasingly being viewed as complementary, not secondary, to Bitcoin. Institutions now see both as long-term hedges against monetary debasement and as parallel technologies underpinning future financial infrastructure.
Outlook: From “Uptober” to Year-End
With inflows accelerating and prices hitting record highs, the question now is whether this “Uptober” momentum can sustain through year-end. Analysts caution that profit-taking and macro shocks could still trigger volatility, but the consensus view is that institutional demand has shifted the market’s center of gravity.
In previous cycles, crypto rallies were often retail-driven and short-lived. This time, the participation of BlackRock, Fidelity, and other Wall Street giants is seen as anchoring long-term stability — and potentially redefining how the next bull market unfolds.