Bitcoin News Today: Bitcoin ETFs Surge on "Digital Gold" Hype as Ethereum ETFs Stumble Without Catalysts

Bitcoin spot ETFs have drawn $446 million in inflows this week, reversing recent outflows and signaling renewed institutional demand for the cryptocurrency, according to SoSoValue data. This surge comes as BlackRock's iShares Bitcoin Trust (IBIT) led the charge with $32.68 million in daily inflows on Friday, while Fidelity's FBTC added $57.92 million. Cumulative inflows for Bitcoin ETFs now stand at $61.98 billion, representing 6.78% of Bitcoin's market capitalization.

The rally in Bitcoin ETFs contrasts sharply with Ethereum's struggles. Ether ETFs recorded $243.9 million in net redemptions for the week ending October 25, marking the second consecutive week of outflows. BlackRock's ETHA ETF alone reported $100.99 million in withdrawals, while Grayscale's ETHE and Bitwise's ETHW saw minor inflows. Total Ethereum ETF assets now sit at $26.39 billion, or 5.55% of ETH's market cap.

The divergence in investor sentiment reflects broader market dynamics. Bitcoin's price climbed to $111,600, up over 4.5% in seven days, while Ethereum hovered near $3,950. Analysts attribute Bitcoin's strength to its role as a "digital gold" store of value amid global economic uncertainty and expectations of U.S. interest rate cuts. "Institutional investors are doubling down on Bitcoin's resilience," said Vincent Liu, CIO of Kronos Research.

Regulatory developments also loom large. The SEC is reviewing 155 crypto ETF filings for 35 coins, including Bitcoin and Ethereum, with decisions delayed by the U.S. government shutdown. The agency's new chair, Paul Atkins, is exploring streamlined approval processes to expedite ETP launches. However, applications from Franklin Templeton and Grayscale remain stalled.

Bitcoin's ETF momentum has accelerated in October, with $4.21 billion in inflows for the month alone. On October 21, daily inflows hit a record $477.19 million, pushing Bitcoin prices near $114,000. BlackRock's IBIT dominated with $210.9 million in inflows, followed by ARK 21Shares' ARKB and Fidelity's FBTC.

Ethereum's ETF performance, meanwhile, has been lackluster. While it saw $141.6 million in inflows on October 21, outflows have since persisted, with Ethereum ETFs collectively losing $93.6 million on October 24. Fidelity's FETH and BlackRock's ETHA led outflows, underscoring weak demand for altcoins.

Market observers suggest Ethereum's struggles stem from stagnant on-chain activity and a lack of network-level catalysts. "ETH funds will only rebound if layer-2 innovations or staking yields gain traction," Liu noted.

Looking ahead, Bitcoin ETFs could see further inflows as macroeconomic tailwinds build. The U.S. government shutdown's resolution and potential Fed rate cuts may spur additional capital inflows. For Ethereum, analysts predict a rebound if network usage surges or new ETFs attract liquidity.