Spot Bitcoin ETFs See Strong Inflows in October
U.S.-listed spot Bitcoin exchange-traded funds (ETFs) attracted $3.24 billion in inflows during the first week of October. This marks the second-largest weekly inflow since these ETFs launched. The record remains $3.38 billion, set in late November 2024, according to data from SoSoValue.
The inflows contrast sharply with the previous week’s $902 million outflows, which had negatively affected market sentiment.
Investor Optimism Boosted by Interest Rate Expectations
Renewed optimism around risk assets is driving demand for Bitcoin ETFs. Many investors expect the U.S. Federal Reserve to cut interest rates soon. Lower rates typically increase the appeal of risky assets like Bitcoin.
Iliya Kalchev, an analyst at digital asset platform Nexo, said, “Growing expectations of another US interest rate cut triggered a shift in sentiment, attracting renewed investor demand for Bitcoin ETFs, bringing four-week inflows to nearly $4 billion.”
Kalchev added that ETF inflows in the fourth quarter could remove over 100,000 BTC from circulation. This amount is more than double the new Bitcoin supply entering the market.
He also noted that demand from ETFs is rising while long-term Bitcoin holders are selling less. This combination strengthens market support and reduces Bitcoin’s vulnerability to sharp price drops.
Bitcoin Price Surges Above $123,000
The ETF inflows helped push Bitcoin’s price above $123,996 on Friday, its highest level since August 14, according to TradingView data. At the time of writing, Bitcoin trades at $122,396, up 1.75% in the last 24 hours.
Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, said Bitcoin could reach $135,000 this quarter given its current momentum.
October’s Bullish Trend Continues
October often brings strong returns for Bitcoin. The month has an average gain of around 20%, according to CoinGlass. This trend has earned October the nickname “Uptober” in the crypto community.
However, short-term momentum depends on upcoming U.S. events. Investors await Federal Reserve Chair Jerome Powell’s next speech, the release of Federal Open Market Committee minutes, and a delayed jobs report affected by the ongoing government shutdown.
