Crypto ETFs Shatter Records with $5.95 Billion Weekly Inflows as Bitcoin Hits New Highs
Key Takeaway: Global cryptocurrency exchange-traded funds achieved an unprecedented milestone last week, attracting a record $5.95 billion in investor inflows as Bitcoin surged to new all-time highs above $125,000. This massive influx represents the largest weekly inflow ever recorded for crypto investment products, demonstrating the growing institutional appetite for digital assets amid economic uncertainty.
Bitcoin Leads Charge to New Records
The surge in institutional demand propelled Bitcoin to a new all-time high of $125,689 on October 5, 2025, eclipsing its previous peak from August. Bitcoin alone captured $3.55 billion of the total weekly inflows, reinforcing its dominant position in institutional cryptocurrency portfolios.
The rally has been driven by what analysts describe as a “perfect storm” of factors, including concerns over U.S. government stability following the ongoing shutdown, weakening employment data, and delayed responses to Federal Reserve interest rate cuts.
“The shutdown matters this time,” noted Standard Chartered’s Geoffrey Kendrick, explaining that Bitcoin has begun trading in correlation with U.S. Treasury term premiums, positioning it as a hedge against political uncertainty.
United States Dominates Global Flows
The United States emerged as the clear leader in crypto ETF adoption, accounting for approximately $5 billion of the total $5.95 billion in weekly inflows. This dominance reflects the maturity of the U.S. regulatory framework following the SEC’s approval of spot Bitcoin ETFs in January 2024.
BlackRock’s iShares Bitcoin Trust (IBIT) led the sector, capturing $2.5 billion in inflows and bringing its total assets under management to $98.47 billion. Despite launching just 21 months ago, IBIT has already become BlackRock’s most profitable ETF.
Fidelity’s Wise Origin Bitcoin Fund ranked second with $692 million in weekly inflows, while other major players including Bitwise, ARK, and VanEck also reported significant positive flows.
International Markets Show Strong Growth
Beyond the United States, international markets demonstrated remarkable growth in crypto ETF adoption. Switzerland recorded $563 million in inflows, while Germany attracted $312 million, both setting new records for their respective markets.
This geographic diversification signals growing global acceptance of cryptocurrencies as legitimate investment vehicles, moving beyond the early dominance of U.S. markets.
Ethereum and Altcoins Gain Momentum
While Bitcoin dominated the headlines, other cryptocurrencies also experienced significant institutional interest. Ethereum-related products attracted $1.48 billion in weekly inflows, bringing year-to-date flows to a record $13.7 billion—nearly triple the previous year’s total.
Alternative cryptocurrencies showed particularly strong performance, with Solana products recording $706.5 million in inflows and XRP attracting $219.4 million, both setting new records. These figures highlight institutional investors’ growing appetite for diversified crypto exposure beyond Bitcoin and Ethereum.
Market Structure Supports Continued Growth
The current rally is distinguished by its foundation in legitimate institutional infrastructure rather than speculative retail trading. Exchange balances of Bitcoin have fallen to a six-year low of 2.38 million BTC, indicating sustained accumulation by long-term holders.
CoinShares’ head of research James Butterfill attributed the surge to “a delayed response to the FOMC interest rate cut, compounded by very weak employment data, and concerns over US government stability”.
The integration of options trading for Bitcoin ETFs has further enhanced institutional appeal, with BlackRock’s IBIT options becoming among the most actively traded ETF option contracts, averaging $1.7 billion in daily notional volume.
Bullish Predictions from Major Banks
Standard Chartered has issued ambitious predictions for Bitcoin’s continued rally, with forecasts targeting $135,000 in the near term and $200,000 by year-end. The bank expects ETF inflows to accelerate further, projecting an additional $20 billion by year-end.
Deutsche Bank has made even more transformative predictions, suggesting that both Bitcoin and gold will likely appear on central bank balance sheets by 2030. The bank’s analysis indicates Bitcoin’s declining volatility and rising legitimacy are positioning it as a modern hedge against inflation and geopolitical risk.
Regulatory Landscape Improves
The crypto ETF landscape continues evolving rapidly as regulatory clarity improves globally. The SEC’s 2025 generic listing framework has dramatically reduced approval times from 240 days to under 75 days, triggering over 30 new product filings.
This streamlined process has democratized access to crypto ETF launches, allowing more asset managers to compete in the growing market and providing investors with increased choice and competition.
Looking Forward
The record $5.95 billion weekly inflow represents more than a numerical milestone—it signifies cryptocurrencies’ fundamental transformation from alternative investments to mainstream financial assets. With institutional adoption accelerating and regulatory frameworks solidifying globally, this unprecedented week may mark the moment digital assets definitively crossed into traditional finance infrastructure.
As Bitcoin approaches new highs and ETF inflows show no signs of slowing, the fourth quarter of 2025 is shaping up to be a defining period for the entire cryptocurrency sector.
Source: Reuters
