Bitcoin News Today: Institutional Frenzy Drives IBIT Past Coinbase as Bitcoin ETFs Soar

A strategy led by BlackRock's iShares Bitcoin Trust (IBIT) has surpassed Coinbase in market capitalization, driven by record inflows into U.S. spot Bitcoin exchange-traded funds (ETFs). On October 3, 2025, Bitcoin ETFs recorded total net inflows of $985.1 million, with IBIT capturing 80.4% of the day's inflows at $791.6 million title1^[1]. This surge propelled IBIT's net assets to $95 billion, marking it as one of the fastest-growing ETFs in history title3^[3]. The dominance of institutional demand is evident, as BlackRock's IBIT now holds 783,000 BTC, contributing to a broader ETF inflow trend that has exceeded $60 billion since inception title3^[3].

The inflows have directly influenced Bitcoin's price trajectory, pushing BTC near its all-time high of $124,474. On October 3, Bitcoin traded at $122,777, with a market capitalization of $2.448 trillion title2^[2]. This momentum is attributed to sustained ETF inflows and growing institutional confidence. JPMorgan analysts predict Bitcoin could reach $165,000 by year-end, citing its undervaluation relative to gold and increased adoption as a hedge against fiscal uncertainty title3^[3]. Additionally, Ethereum ETFs saw $233.55 million in inflows, with BlackRock's ETHA leading at $206.71 million, though Ethereum's market share remains smaller compared to Bitcoin title2^[2].

The ETF-driven demand has reshaped market dynamics, with Bitcoin ETFs accounting for 6.74% of Bitcoin's total market cap and Ethereum ETFs representing 5.58% of ETH's market cap title2^[2]. This liquidity shift has spurred trading volumes exceeding $7.52 billion for Bitcoin ETFs and $2.28 billion for Ethereum ETFs title2^[2]. Analysts highlight that sustained inflows signal broader acceptance of digital assets by mainstream investors, with BlackRock and Fidelity dominating the inflow narrative title6^[5]. The ETFs' performance also aligns with historical patterns, where inflows often precede price rallies, as seen in late 2024 and 2021 title8^[6].

Expert predictions underscore the bullish sentiment. Galaxy Research forecasts Bitcoin to test $185,000 by Q4 2025, driven by institutional and corporate adoption . Meanwhile, SoSoValue data shows Bitcoin ETF inflows have accelerated despite the U.S. government shutdown, with $3 billion in new inflows this week title3^[3]. Matt Mena of 21Shares anticipates a "Uptober" rally, linking inflows to potential rate cuts and Bitcoin's role as a "digital gold" hedge title3^[3]. However, risks persist, including regulatory scrutiny and potential volatility from macroeconomic shifts, such as inflation or geopolitical events .

The ETF surge has also triggered a wave of new applications, with over 30 crypto-related ETF filings submitted to the U.S. SEC title3^[3]. This regulatory momentum reflects rising institutional interest in digital assets, with Rex-Osprey and other firms seeking to expand product offerings. The broader implications for the crypto market include increased competition among ETF providers and potential diversification into altcoins and DeFi, as seen in Ethereum's staking growth and Bitcoin DeFi expansion .

In summary, the ETF-driven strategy has redefined Bitcoin's market landscape, with BlackRock's IBIT leading a surge in institutional adoption that has outpaced Coinbase's market capitalization. Sustained inflows, expert forecasts, and regulatory developments suggest a maturing crypto ecosystem, though challenges like regulatory clarity and macroeconomic risks remain critical for long-term stability.