Bitcoin News Today: Bitcoin's ETF Surge: Rocket Fuel for $126K All-Time High

Bitcoin's U.S. spot exchange-traded funds (ETFs) recorded their largest daily inflow of 2025 on October 6, totaling $1.21 billion, according to SoSoValue data. This marked the sixth consecutive day of net inflows, accumulating to $4.35 billion, the highest since July 10, 2025, when inflows of $1.18 billion preceded a Bitcoin (BTC) all-time high (ATH) above $119,000. Following the recent surge, BTC achieved an ATH of over $126,000, reinforcing bullish sentiment. BlackRock's iShares Bitcoin Trust (IBIT) led the inflow, capturing $969.95 million-its second-largest single-day inflow since its launch-bringing its total net assets to $99.44 billion. U.S. spot BTC ETFs now hold $169.48 billion in assets, representing 6.79% of BTC's market capitalization .

The inflows align with historical patterns where large ETF inflows have coincided with short-term BTC peaks. For instance, the $1 billion+ inflows on March 12, 2024, November 2024, and January 17, 2025, were followed by BTC price surges to $74,000, $100,000, and $109,000, respectively. Analysts note that similar inflows on July 10–11, 2025, were succeeded by a $123,000 ATH. This pattern has fueled expectations of a repeat in October, dubbed "Uptober," a historically strong month for crypto markets. The latest inflows, combined with BTC's current price near $124,000, suggest institutional and retail confidence in the asset's trajectory .

BlackRock's dominance in the BTC ETF space has intensified, with IBIT generating an estimated $244.5 million in annual revenue for the firm. The fund's rapid growth-reaching nearly $100 billion in assets under management (AUM) in 435 days-outpaces even the Vanguard S&P 500 ETF (VOO), which took 2,011 days to achieve the same milestone. Eric Balchunas, a senior Bloomberg ETF analyst, highlighted that IBIT is now BlackRock's most profitable ETF, underscoring the product's role in reshaping institutional crypto allocation .

The ETF-driven rally has broader implications for the crypto market. With BTC hitting ATHs, market participants speculate about an impending "altcoin season," where smaller cryptocurrencies may follow Bitcoin's upward trend. Additionally, the surge in ETF inflows has spurred increased trading volumes and liquidity, with combined spot and derivatives trading on centralized exchanges hitting a yearly high of $9.72 trillion in August 2025. This liquidity has supported orderly price discovery, even amid rapid appreciation, as large orders are absorbed without significant slippage .

Institutional and retail participation in BTC ETFs has diverged in impact. While institutions have driven strategic, large-block allocations, retail demand has added momentum. However, analysts emphasize that durable institutional flows are more critical for long-term price stability than short-lived retail buying. The current inflow surge reflects a rotation of capital from equities and cash into crypto, broadening participation beyond speculative traders. This trend aligns with Uptober's historical significance, though analysts caution that past patterns are not guarantees and should be weighed against current fundamentals .

Bitcoin's price resilience has also been supported by mid-sized holder accumulation and a widening Coinbase Premium Gap, which hit $94.02. This premium, reflecting U.S. institutional demand, historically precedes major breakouts. Meanwhile, over 32,000 BTC aged 3–5 years have re-entered circulation, indicating confidence in market liquidity. Despite leveraged positions totaling $48 billion at risk, bulls are defending the $116,000–$117,000 support level, which could determine whether the rally is a genuine breakout or a bear trap .

Source: [1] Yahoo Finance (https://finance.yahoo.com/news/bitcoin-etfs-post-biggest-inflow-113215131.html) [2] Coindesk (https://www.coindesk.com/markets/2025/10/07/u-s-bitcoin-etfs-log-usd1b-inflows-again-a-level-that-s-marked-local-tops-six-times-before) [3] The Cryptonomist (https://en.cryptonomist.ch/2025/10/06/bitcoin-etf-inflows-boost-market/)