US Bitcoin ETFs have experienced a surge in inflows, marking their second-highest weekly total since launch, fueled by a broader crypto rally. This influx of capital signals renewed confidence from both institutional and retail investors in digital assets.
Last week, US-listed Bitcoin and Ethereum ETFs attracted over $4.5 billion in net inflows. Bitcoin ETFs alone accounted for approximately $3.2 billion of this total, positioning them just behind November 2024's peak of $3.37 billion. This significant inflow underscores a strong reversal from previous outflows and sets a positive tone for October, a month historically known as "Uptober" for its bullish crypto performance.
The surge in ETF activity has coincided with Bitcoin reaching new all-time highs, trading above $125,000. On Monday, Bitcoin hit a new all-time high above $126,100, following the strong institutional accumulation. This price increase is supported by increased trading volumes and a rotation back into digital assets, suggesting deeper structural support for the ongoing rally.
BlackRock's iShares Bitcoin Trust (IBIT) led the way with $1.78 billion in inflows, followed by Fidelity's FBTC at $692 million. Ark 21Shares added $254 million, while Bitwise captured another $212 million. This collective surge reflects growing institutional conviction and renewed retail interest in gaining Bitcoin exposure through regulated investment products.
Ethereum ETFs have also mirrored this positive trend, attracting $1.29 billion in inflows and generating nearly $10 billion in weekly trading volume. BlackRock's ETHA fund led with $687 million in inflows, followed by Fidelity's $305 million.
Analysts suggest that the magnitude of ETF inflows and shifting institutional strategies indicate a deeper, more structural support for the current crypto rally. The synchronized inflows across both Bitcoin and Ethereum ETFs made last week one of the busiest trading periods in recent memory. This pattern suggests that institutional portfolios are rotating back into digital assets, seeking to capture early upside potential as macroeconomic sentiment stabilizes.
Several factors contribute to this renewed investor appetite. The US government shutdown and uncertainty surrounding economic data releases have led investors to seek alternative assets perceived as stores of value. Bitcoin is increasingly viewed as a hedge against dollar debasement and fiscal instability.
On-chain signals indicate genuine demand, with analysts pointing to strong upward flows, wide Coinbase premiums, and rising open interest in futures markets, all lending momentum to the rally. Bitcoin futures open interest also reached a new high of 761,680 BTC, indicating rising risk appetite.
Looking ahead, the sustainability of this upward trend depends on whether the current strength can hold. If ETF flow momentum continues and macro uncertainty lingers, Bitcoin may push further into price-discovery zones. Some analysts predict that Bitcoin could retest its August high of $125,000 before year-end and potentially reach Fibonacci extension targets near $135,000 in the coming months. If institutional demand holds steady, Bitcoin could stage one of its most dramatic finishes to a year yet, setting the stage for a parabolic rally into 2026.
