Bitcoin News Today: IBIT's $2.63B Inflows Spark Bitcoin Supply Shock, Push Price Past $120K

BlackRock's iShares Bitcoin Trust (IBIT) has recorded a record $2.63 billion in net inflows during the first week of October 2025, solidifying its position as the top-performing Bitcoin ETF and outpacing traditional equity-focused products breakingcrypto-2025-10-8-blackrocks-bitcoin-etf-ibit-shatters-records-with-35b-inflows-outperforming-s-and-p-500-giants^[1]. This surge in institutional capital has driven Bitcoin's price to an all-time high of $126,080 on October 6, with continued bullish momentum as the asset class gains mainstream acceptance 2025/10/08/blackrock-bitcoin-etf-ibit-100-billion-aum/^[2]. The inflows represent a significant milestone for the ETF, which now holds approximately $97.8 billion in assets under management (AUM), nearing the $100 billion threshold 2025/10/02/blackrock-s-ibit-enters-top-20-etfs-by-assets-sees-biggest-inflow-since-mid-august^[3].

The ETF's success is attributed to its 0.25% management fee, which contrasts sharply with higher-cost alternatives like Grayscale's Bitcoin Trust (GBTC), which charges 1.5%. This fee advantage has attracted a broad institutional and retail investor base, with IBIT capturing 60% of total spot Bitcoin ETF assets 2025/10/03/blackrock-bitcoin-etf-inflows-reach-62-billion-as-ibit-share-price-hits-all-time-high/^[4]. Bloomberg ETF strategist Eric Balchunas noted that IBIT's revenue of $244.5 million annually has already surpassed older, larger funds like the iShares Russell 1000 Growth ETF (IWF), a feat achieved in just 435 days compared to over two decades for traditional ETFs 2025/10/06/bitcoin-etf-largest-daily-inflows-2025/^[5].

The inflows have had a direct impact on Bitcoin's price action and market structure. During the week of October 6–8, Bitcoin's price surged past $120,000, with IBIT accounting for $1.78 billion of the $3.2 billion in weekly ETF inflows 2025/10/08/bitcoin-spot-etf-inflows-oct7-2025-ibit-leads/^[6]. Daily trading volumes for IBIT reached $5.7 billion on October 7, reflecting heightened liquidity and institutional demand. Analysts highlight that the ETF's growth has outpaced Bitcoin's supply issuance, with institutional purchases in 2025 exceeding new supply by a 7.4:1 ratio 2025/10/02/blackrock-s-ibit-enters-top-20-etfs-by-assets-sees-biggest-inflow-since-mid-august^[7]. This dynamic has created a "supply shock" narrative, where reduced liquidity on traditional crypto exchanges and increased ETF absorption amplify price volatility.

The broader market implications are equally significant. Bitcoin ETFs now hold 1.296 million BTC, or 6.5% of the total circulating supply, positioning them as a core capital inflow mechanism for the crypto market 2025/10/08/blackrock-bitcoin-etf-ibit-100-billion-aum/^[8]. This has spurred secondary effects, including tighter trading spreads, deeper derivatives markets, and increased regulatory clarity. The U.S. Securities and Exchange Commission (SEC) has shifted toward a proactive development approach, and the Trump administration's January 2025 executive order on crypto regulation is expected to further bolster institutional confidence 2025/10/06/bitcoin-etf-largest-daily-inflows-2025/^[9].

BlackRock's dominance extends beyond AUM. The ETF has overtaken Coinbase's Deribit as the largest venue for Bitcoin options, with $38 billion in open interest 2025/10/02/blackrock-s-ibit-enters-top-20-etfs-by-assets-sees-biggest-inflow-since-mid-august^[10]. This shift underscores the growing preference for regulated, exchange-traded structures over traditional crypto platforms. Additionally, IBIT's performance has validated Bitcoin's role as a diversifier against traditional market volatility, with BlackRock itself recommending a 1–2% allocation for institutional portfolios 2025/10/08/blackrock-bitcoin-etf-ibit-100-billion-aum/^[11].

Looking ahead, analysts project continued institutional adoption and price appreciation. Standard Chartered analysts forecast Bitcoin could reach $200,000 by year-end if inflows remain robust 2025/10/08/blackrock-bitcoin-etf-ibit-100-billion-aum/^[12]. The approval of Ethereum and Solana ETFs is expected to follow, with applications for altcoin products progressing rapidly. Macro factors, including anticipated Federal Reserve rate cuts in mid-2026, are also seen as bullish catalysts 2025/10/06/bitcoin-etf-largest-daily-inflows-2025/^[13].