- Bitcoin ETFs experienced record inflows of $2.2 billion this week, fueling the growth of institutional interest in Bitcoin.
- BlackRock’s IBIT fund led the charge, adding 3,930 BTC worth $466.5 million to its holdings.
- Bitcoin’s price surged past $120K, reflecting growing bullish sentiment driven by institutional investments and positive market trends.
Bitcoin ETF products recorded more than $2.2 billion in inflows this week, marking a significant rebound after a challenging September. This surge in investments follows a turbulent month where nearly $1 billion had been pulled out. The record-setting inflows align with a notable uptick in the price of Bitcoin, which surpassed $120,000 for the first time since August.
According to SoSoValue data, Bitcoin ETFs saw a notable rise in their weekly inflows, with the total reaching $2.2 billion. This surge in capital came after a month of fluctuations, especially in September, when the sector saw nearly $1 billion in outflows. On October 2 alone, U.S. spot ETFs added 5,290 BTC, valued at around $627 million. Leading the pack was BlackRock’s iShares Bitcoin Trust (IBIT), which purchased 3,930 BTC for $466.5 million. Additionally, Fidelity’s FBTC saw a robust $89 million in inflows.
BlackRock and Fidelity Drive Bitcoin ETF Growth
BlackRock’s dominance in the market continues, as its IBIT fund led the inflows, contributing significantly to the record-breaking figures. The momentum is partly due to the growing institutional interest in Bitcoin ETFs. This reflects a larger trend of continued investment by major financial players, with firms like Fidelity also seeing substantial activity. Despite September’s mixed performance, which included a $642 million inflow on September 12 alone, the month ended strongly, with a net total of $3.5 billion in inflows across all U.S. Bitcoin ETFs.
The increase in Bitcoin ETF investments comes at a time of bullish momentum for Bitcoin’s price. The cryptocurrency surged past the $120,000 mark, reflecting a 10% rise. This rally is attributed to the “Uptober” effect, which has sparked significant market optimism. Supporting the upward trend, Bitcoin’s Accumulation Trend Score has hit its highest level since August, indicating that wallets with between 10 and 1,000 BTC are consistently acquiring more of the asset. The combination of strong institutional backing and a reduction in selling pressure from larger holders has played a crucial role in this price surge.
Institutional Interest Continues to Grow
In parallel to the surge in Bitcoin ETF investments, BlackRock’s IBIT fund has also surpassed Deribit to become the largest platform for Bitcoin options trading. This increase in institutional demand underscores growing confidence in Bitcoin and its ETF products. Additionally, Arkham Intelligence revealed that the estimated 1.1 million BTC associated with Bitcoin’s creator, Satoshi Nakamoto, is now worth over $130 billion. These coins have remained untouched since 2010, adding further intrigue to Bitcoin’s long-term outlook.
