Bitcoin ETFs have continued to ride the wave of what has been dubbed ‘Uptober,’ with an impressive $2.71 billion flowing into these funds over the last week. This influx highlights the growing institutional demand for Bitcoin investment vehicles. As of the most recent data from SoSoValue, total assets under management for Bitcoin ETFs have surged to $158.96 billion, constituting nearly 7% of Bitcoin’s entire market capitalization.
Vincent Liu, the chief investment officer at quantitative trading firm Kronos Research, emphasized the momentum, stating, “Capital keeps flowing into BTC as allocators double down on the digital gold conviction trade. Liquidity is building now as the market momentum takes shape.”
Massive Inflows Highlight Bitcoin ETFs’ Popularity
The week kicked off with a strong performance as spot Bitcoin ETFs recorded a staggering $1.21 billion in net inflows on Monday. This marked the second-largest single-day inflow since the inception of these financial products. Following closely, Tuesday saw additional strong inflows of $875.61 million.
However, the scenario shifted slightly by Friday with a net outflow of $4.5 million, attributed to market uncertainties following a statement from President Donald Trump. He confirmed plans to impose a 100% tariff on imports from China, causing temporary market jitters.
Leading Players in the Bitcoin ETF Market
BlackRock’s IBIT stood out during this period, leading the market with $74.2 million in daily inflows and accumulating $65.26 billion overall. On the other hand, Fidelity’s FBTC and Grayscale’s GBTC experienced outflows of $10.18 million and $19.21 million, respectively.
Liu further commented, “Trump’s tariff threat looks more like a negotiation tactic than a policy pivot, a classic pressure play. Markets may flinch short term, but smart money knows the game: macro noise, conviction unchanged.”
Uptober Sparks a Surge in Crypto ETF Filings
The excitement around Bitcoin ETFs has also spurred a rush of applications with the US Securities and Exchange Commission (SEC). Over the past two months, there have been 31 crypto ETF applications, 21 of which were filed in the first eight days of October alone. Analysts are optimistic, suggesting this could be the opening of the “floodgates” for crypto ETFs.
James Seyffart of Bloomberg noted that as of late August, nearly 100 crypto-related products were awaiting decisions from the SEC. This surge in activity underscores the burgeoning interest and potential growth in the crypto ETF space.
As ‘Uptober’ progresses, all eyes remain on the developments within the Bitcoin ETF market and its implications for the broader cryptocurrency landscape.
