Bitcoin News Today: Institutional Capital Favors Bitcoin ETFs, Abandons Ethereum

Bitcoin ETFs Rebound With $446 Million as Ether Funds Bleed

Bitcoin spot ETFs in the U.S. recorded a net inflow of $446 million in the week ending Oct. 24, reversing recent outflows and signaling renewed institutional confidence in the digital asset. The inflows, led by BlackRock's iShares Bitcoin Trust (IBIT) with $107.8 million, contrasted sharply with Ethereum ETFs, which posted outflows of $127.5 million, according to data from SoSoValue and Farside Investors and a TradingNews report and a Coinpedia article. The divergence highlights a shift in investor sentiment, with Bitcoin maintaining its dominance as a macro hedge while Ethereum struggles to attract capital amid regulatory uncertainty and lower staking yields, as noted in a FinanceFeeds analysis.

The rebound in Bitcoin ETF flows followed a volatile week that saw $101 million in outflows on Oct. 22, driven by profit-taking and geopolitical tensions. However, inflows resumed on Oct. 23, with IBIT, Fidelity's FBTC, and Bitwise's BITB collectively adding $132.4 million. BlackRock's product now holds 58.2% of the Bitcoin ETF market, underscoring its role as the primary vehicle for institutional exposure, according to TradingNews. Meanwhile, Ethereum ETFs—despite a 266% surge in assets under management for BlackRock's ETHA—continue to underperform, with Grayscale's GBTC and Ark 21Shares' ARKB recording outflows of $60.5 million and $55 million, respectively, the report added.

The ETF landscape has become a critical driver of Bitcoin's price action, with inflows and outflows directly influencing short-term momentum. Since January 2024, ETF flows have dictated Bitcoin's direction more than whale activity, as U.S. spot ETFs now hold 6.4% of the total supply—equivalent to 1.66 million BTC. This institutionalization of "whale" influence has amplified price volatility, with ETF inflows often preceding rallies above key resistance levels and outflows triggering pullbacks, TradingNews observed.

Ethereum's struggles reflect broader challenges in the altcoin market. While Ethereum ETFs attracted $8.7 billion in Q3 inflows—surpassing Bitcoin for the first time—recent outflows suggest a rotation into Bitcoin as investors seek yield and regulatory clarity. Ethereum's dominance has dipped to 11.9%, compared to Bitcoin's 55.7%, as staking yields decline and the SEC's regulatory scrutiny weighs on market sentiment, TradingNews and FinanceFeeds reported.

Technical indicators also support a bullish outlook for Bitcoin. The asset stabilized above $110,000, with RSI readings near 56 and a widening bullish MACD spread. A breakout above $112,000 could target $118,500, aligning with derivative positioning and ETF inflow momentum, TradingNews noted. Meanwhile, Bitcoin futures volumes on Binance surged to $543.3 billion in October, reflecting speculative optimism despite narrowing spot volatility, the same coverage added.

Looking ahead, analysts anticipate sustained inflows into Bitcoin ETFs as institutions continue to allocate capital amid expectations of Fed rate cuts in early 2026. Ethereum's recovery, however, depends on macroeconomic clarity and improved staking yields. With Bitcoin ETFs now controlling over 800,000 BTC—equivalent to $22.3 billion in assets—the market's liquidity and price discovery mechanisms have become increasingly centralized, further entrenching Bitcoin's role as the digital asset benchmark, according to TradingNews and a Coinotag summary.