Bitcoin News Today: Bitcoin ETFs Soar as Price Dives: Institutional Buying Defies Market Fears

Spot bitcoin exchange-traded funds (ETFs) attracted a record $1.21 billion in net inflows on Oct. 6, 2025, marking the largest single-day influx of capital this year, according to SoSoValue data . This surge came as bitcoin (BTC) prices dipped below $121,000, highlighting a striking divergence between institutional buying pressure and short-term market sentiment. Over the first two days of October, BTC ETFs pulled in nearly $2 billion, with BlackRock's iShares Bitcoin Trust (IBIT) alone capturing $969.95 million-its second-largest inflow day since launch .

The inflows underscore a broader trend of institutional adoption. Hong Kim, co-founder of BitwiseInvest, noted that BTC ETFs inject $5–10 billion in new buying pressure quarterly, describing it as an "unstoppable secular trend" . BlackRock's IBIT, now the largest BTC ETF with $99.44 billion in assets under management, has generated $244.5 million in annual revenue for the firm, outpacing even its top equity funds . Cumulative inflows for U.S. BTC ETFs hit $169.54 billion as of Oct. 8, representing 6.79% of BTC's market cap .

Despite this institutional optimism, geopolitical tensions triggered a sharp selloff. U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports sent shockwaves through global markets, causing BTC to plummet below $119,000-erasing $200 billion in crypto market value within hours . The move exacerbated fears of a trade war, with analysts noting that leveraged positions in BTC and ether (ETH) faced heavy liquidations, wiping $125 billion in crypto assets . Gold, meanwhile, surged past $4,000 per ounce as investors flocked to traditional safe havens .

The contrast between ETF inflows and spot price volatility reflects a deepening structural shift. While retail traders retreated amid Trump's tariff threats, institutions continued accumulating BTC through regulated vehicles. SoSoValue data shows daily ETF inflows averaged $1.21 billion in early October, with total inflows for 2025 reaching $21.5 billion . This momentum has been fueled by regulatory clarity, including the SEC's approval of Ethereum ETFs and pending applications for Solana (SOL) and XRP products .

Analysts argue that ETF-driven demand is outpacing BTC's natural supply constraints. Institutional purchases in 2025 have exceeded new BTC issuance by a 7.4:1 ratio, creating a "supply shock" narrative that amplifies price swings . Deutsche Bank predicts BTC could feature on central bank balance sheets alongside gold by 2030, while Standard Chartered analysts project a year-end 2025 target of $200,000, assuming sustained ETF inflows .

However, macroeconomic risks remain. The Trump administration's escalation of trade tensions has introduced uncertainty, with BTC testing key support levels near $113,000 . Morgan Stanley's decision to open crypto access to all clients, including retirement accounts, signals growing acceptance but also highlights the asset class's sensitivity to geopolitical shocks .

[1] Bitcoin (BTC) ETFs See $876M in One-Day Inflows Despite Drop (https://www.coindesk.com/markets/2025/10/08/bitcoin-etfs-see-usd876m-in-one-day-inflows-despite-drop-in-spot-prices)

[2] BlackRock's Bitcoin ETF (IBIT) Shatters Records with ... (https://markets.financialcontent.com/advisoranalyst/article/breakingcrypto-2025-10-8-blackrocks-bitcoin-etf-ibit-shatters-records-with-35b-inflows-outperforming-s-and-p-500-giants)

[3] Bitcoin ETF Inflows Surge as Institutional Demand Soars (https://www.cryptotimes.io/2025/10/08/bitcoin-etf-inflows-surge-as-institutional-demand-soars/)

[4] Bitcoin ETFs Post Biggest Inflow of 2025 as Uptober Heats Up (https://www.ccn.com/news/crypto/bitcoin-etf-largest-daily-inflows-2025/)

[5] Bitcoin ETFs End Q3 2025 with $7.8 Billion Inflows - Phemex (https://phemex.com/news/article/bitcoin-etfs-secure-78-billion-inflows-in-q3-2025-despite-outflows-22814)

[8] Trump Crashes Crypto Markets With 100% Tariff On China (https://beincrypto.com/trump-china-tariff-triggers-200-billion-crypto-crash/)

[9] Crypto Markets Crash Due To Trump's Proposed Tariff On China (https://www.btcc.com/en-CA/academy/research-analysis/crypto-markets-crash-due-to-trumps-proposed-tariff-on-china-everything-you-need-to-know)

[10] Crypto Crash: Bitcoin and Ethereum Plunge After Donald (https://www.ibtimes.co.uk/crypto-crash-bitcoin-ethereum-plunge-after-donald-trump-slaps-full-tariffs-china-imports-1747416)

[12] Bitcoin Drops Below $119K After Trump's Tariff Threat on China (https://coincentral.com/bitcoin-drops-below-119k-after-trumps-tariff-threat-on-china/)