Bitcoin News Today: Bitcoin ETFs Power $4.21 Trillion Market Cap as BlackRock's IBIT Dominates Inflows

Bitcoin's price has surged to within 1.1% of its all-time high, trading at $122,777 as of October 3, 2025, while the total cryptocurrency market cap reached $4.21 trillion, driven by record inflows into U.S. spot Bitcoin exchange-traded funds (ETFs). BlackRock's iShares Bitcoin Trust (IBIT) led the charge, capturing $791.55 million in inflows on October 3 alone, pushing its total net inflows to $61.376 billion since its launch. This performance has propelled IBIT into the top 20 ETFs by assets under management, now valued at $90.7 billion, according to Bloomberg Senior ETF Analyst Eric Balchunas ^[1].

The $985.08 million inflow into Bitcoin ETFs on October 3 marked the largest single-day inflow since September 10, 2025, with Bitcoin's market capitalization surging to $2.448 trillion. This reflects growing institutional and retail confidence, as ETFs now account for 6.74% of Bitcoin's total market cap. Ethereum ETFs, meanwhile, saw $233.55 million in inflows, though this marked a decline from previous days. BlackRock's ETHA dominated the Ethereum ETF category with $206.71 million in inflows, despite Ethereum's market cap rising to $544.369 billion ^[2].

The surge in ETF demand coincides with Bitcoin's proximity to its historical peak, fueled by macroeconomic factors. The Federal Reserve's anticipated rate cuts have heightened investor appetite for risk assets, with Bitcoin's price rising 4% on October 2, 2025, to $119,000. Analysts note that lower rates reduce the opportunity cost of holding non-yielding assets like Bitcoin and weaken the U.S. dollar, enhancing Bitcoin's appeal as a hedge against inflation. Historical data from 2020 shows a similar pattern, where post-rate-cut liquidity injections led to a 1,600% surge in Bitcoin's price ^[3].

Ethereum's performance, while lagging behind Bitcoin, also shows resilience. Its price climbed to $4,502.39, supported by a 24-hour trading volume of $43.237 billion. Ethereum ETFs, including Fidelity FETH and Grayscale ETH, collectively added $30.57 billion in assets, representing 5.58% of Ethereum's market cap. However, Ethereum's ETF inflows remain volatile, with only four of nine funds posting positive gains on October 3 ^[2].

The broader crypto market has benefited from ETF-driven liquidity, with total trading volume across Bitcoin and Ethereum ETFs hitting $9.8 billion in a single day. This growth underscores the maturation of crypto as an asset class, as institutional investors increasingly allocate capital through regulated vehicles. BlackRock's IBIT, for instance, has gained 175% since its January 2024 launch, reflecting its dominance in a competitive ETF landscape ^[1].

Despite the bullish momentum, challenges persist. On-chain data reveals that large holders (whales) have sold 147,000 BTC in a month, adding downward pressure. Analysts warn that Bitcoin could swing $20,000 in either direction in early Q4 2025, with critical support levels at $109,898 and resistance at $115,000. A breakout above $115,000 could test $120,000, but macroeconomic uncertainties, including inflation and global economic conditions, remain key risks .

The $4.21 trillion total crypto market cap highlights the sector's expansion, driven by Bitcoin's dominance and Ethereum's institutional adoption. With Bitcoin ETFs now holding $164.50 billion in net assets and Ethereum ETFs reaching $30.57 billion, the integration of crypto into traditional finance continues to accelerate. As the Federal Reserve's policy decisions and institutional flows shape the market, Bitcoin's trajectory toward $200,000 by year-end remains a focal point for investors .