Bitcoin ETF inflows exceeded $4.21 billion so far in October, led by BlackRock's sharp growth. Institutional investors are positioning their portfolios for interest rate relief from the Fed and macroeconomic catalysts, which has lifted the Bitcoin price above $111,000.
October has been marked by institutions re-engaging in the Bitcoin ETF market, turning last month's net withdrawals into record deposits of $4.21 billion. The strength is due to growing expectations of interest rate cuts and global risk impact, which have made crypto an increasingly important investment choice for major players.
BlackRock's iShares Bitcoin Trust (IBIT) received $210.9 million in new capital this month and is leading the way as the first choice for institutions seeking regulated Bitcoin exposure. ARK 21Shares and Fidelity's Bitcoin fund continue to raise significant funds. Overall, Bitcoin-related ETFs now have $149.96 billion under management, over 6.7% of Bitcoin's total market capitalization. Weekly trading volume for Bitcoin ETFs has reached $3.34 billion, more than twice that of Ethereum. The price of Bitcoin has risen to over $111,383, with a positive trend through October.
Unlike Bitcoin, Ethereum ETFs have had significant withdrawals in October, with $243.9 million net out of the market this week, and over 555 million overall for the month. BlackRock's ETHA ETF led the withdrawals, while Grayscale's ETHE supplied smaller deposits. This marks that institutional investors are seeking towards Bitcoin's role as “digital gold” for stability in uncertain times. Ethereum price fell to $3,832, with declines two weeks in a row.
Institutional depository flows reveal that large Bitcoin holders are moving their funds into ETF-affiliated depositories, positioning themselves for future regulated mortgaging and crypto-lending. JPMorgan is to launch crypto loans with Bitcoin and Ethereum, and is aiming for $50 billion in new capacity over the next two years, further integrating crypto into traditional finance. At the same time, US authorities are now considering 155 new crypto ETFs. Approval of a broader ETF (CoinDesk 20) could provide further growth and potentially trigger a new bull phase.
Bitcoin ETF-driven recovery is closely linked to global economic trends, including waning tensions between the US and China as well as expected interest rate easing from the Federal Reserve. With ETF deposits tightening market supply and institutional adoption accelerating, Bitcoin stands ahead for further growth out the year. Short-term course targets are 120—125 thousand dollars, and with sustained deposits up to 140—150 thousand dollars. Its institutional conviction and ETF integration make Bitcoin a core component of traditional portfolios.
Source: TradingView
