Bitcoin News Today: Bitcoin ETFs Mirror Gold's Rise as Institutional Demand Surges

Bitcoin's profit supply is showing signs of stabilization as U.S. spot ETF inflows surged to $477.19 million on October 21, reversing a four-day outflow streak and signaling renewed institutional confidence in the asset, according to a Coinpedia report. The inflows, led by BlackRock's IBIT with $210.90 million, marked the strongest single-day ETF inflow since mid-September and pushed Bitcoin's price to $108,209.29, a 2.87% rebound from its recent low, according to a Trading News report. This resurgence follows a $19 billion market liquidation event on October 10, which had driven BTC to a 2025 trough.

The ETF-driven recovery is underpinned by a shift in institutional sentiment. Farside Investors data revealed that BlackRock's IBIT alone attracted $210.9 million in net inflows on October 22, while Fidelity's FBTC added $57.92 million the following day, per a Blockchain News flash. Cumulative assets under management for Bitcoin ETFs now stand at $151.58 billion, representing 6.85% of the cryptocurrency's total market capitalization, Coinpedia reported. Analysts at LVRG Research attribute the inflows to Bitcoin's reemergence as a macro hedge, with ETFs acting as a stabilizing force amid geopolitical tensions and fiscal uncertainty, Trading News analysts said.

Ethereum ETFs, while showing mixed performance, added $141.66 million in inflows on October 21, with Fidelity's FETH and BlackRock's ETHA leading the charge, Coinpedia noted. However, Ethereum ETFs later recorded outflows of $127.51 million on October 23, contrasting with Bitcoin's sustained inflows, a Coinpedia analysis found. This divergence highlights Bitcoin's role as the primary liquidity anchor in the crypto market, even as Ethereum's institutional adoption gains traction through staking yields and smart contract activity, Trading News observed.

Market participants are cautiously optimistic about the near-term outlook. Bitcoin's price has held above $107,000, a critical support level, with technical indicators suggesting a potential retest of $115,000–$118,000 resistance if inflows persist, Trading News noted. Open interest in Bitcoin futures remains elevated at $22 billion, and derivatives data show normalized funding rates, indicating reduced panic selling, Trading News reported. Meanwhile, Ethereum's price dipped to $3,832.38 on October 22 but rebounded to $3,970.23 by October 23, reflecting broader market stabilization, Coinpedia reported.

The ETF inflows have also reshaped Bitcoin's supply dynamics. Exchange-held balances have fallen to a six-year low of 2.83 million BTC, amplifying ETF-driven price movements, Trading News reported. Institutional custodians like BlackRock now control over 800,000 BTC, or 3.2% of the total supply, further cementing ETFs as a dominant force in liquidity provision, Trading News noted. This structural shift has drawn comparisons to gold's ETF market, with Standard Chartered analysts projecting BTC could reach $200,000 by late 2025 if inflows continue, Trading News added.

Despite the optimism, challenges remain. The Federal Reserve's delayed rate-cut cycle and geopolitical risks, including the U.S. government shutdown, continue to weigh on risk appetite, Coinpedia coverage noted. However, institutional buyers view current volatility as an opportunity to accumulate Bitcoin at discounted prices. Jordan Knecht of GlobalStake noted that the October 10 liquidation event "cleansed weak hands," leaving room for a "re-entry window" for firms with dry powder, Trading News reported.

As of October 24, Bitcoin ETFs recorded $90.605 million in inflows, with Fidelity's FBTC dominating with $57.924 million, Coinotag reported. BlackRock's cumulative inflows for the week reached $324.3 million, reinforcing its role as a stabilizing force for BTC's price, CoinCentral reported. With ETFs now accounting for 6.78% of Bitcoin's market cap, the asset's institutional adoption trajectory appears firmly intact, Coinpedia analysis found.