Bitcoin News Today: Institutional Appetite Drives BlackRock's Bitcoin ETF to $1.2B Inflow, Surpassing S&P 500 Giants

BlackRock's iShares Bitcoin Trust (IBIT) has surged to prominence as the largest and most profitable Bitcoin ETF, recording a record $1.2 billion in net inflows on October 6, 2025, the highest single-day inflow of the yearBeInCrypto, ^[1]. The fund, which charges a 0.25% management fee on its $97.8 billion in assets under management (AUM), has generated $244.5 million in annual revenue for the asset manager, surpassing even long-established benchmarks like the Core S&P 500 ETF (IVV), which has a 25-year historyBeInCrypto, ^[1]. IBIT's rapid growth-approaching $100 billion in AUM within 435 days-far outpaces the 2,011 days it took the Vanguard S&P 500 ETF (VOO) to reach the same milestoneBeInCrypto, ^[1].

The ETF's dominance was underscored by its $969.95 million contribution to the $1.19 billion daily inflow on October 6, marking the first billion-dollar inflow since JulyBeInCrypto, ^[1]. Over the first six days of October, Bitcoin ETFs attracted $2.29 billion in inflows, signaling a potential record month for the sectorBeInCrypto, ^[1]. This surge coincided with Bitcoin's price rally, which saw the cryptocurrency climb to an all-time high of $126,000, rising nearly 9% in a weekBeInCrypto, ^[1]. Analysts attribute the inflows to growing institutional demand for regulated cryptocurrency exposure, with BlackRock's ETF capturing 81% of the $3.2 billion in weekly inflows during "Uptober"The Block, ^[2].

The ETF's success has broader implications for the crypto market. Bitcoin ETF options open interest in IBIT surpassed $38 billion, overtaking Deribit's $32 billion in Bitcoin options open interest, a first for a U.S. ETFThe Block, ^[2]. This shift reflects IBIT's role as a liquidity hub, with its trading volume reaching $4.3 billion on October 6-ranking it among the top 10 ETFs by daily volume alongside SPY and QQQThe Block, ^[2]. The fund's performance also highlights the accelerating adoption of Bitcoin as an asset class, with cumulative inflows since January 2024 nearing $60 billionThe Block, ^[2].

Historical data suggests a correlation between large ETF inflows and short-term Bitcoin price peaks. Similar $1 billion inflow events in 2024 and 2025 preceded local tops in Bitcoin's price, including rallies to $74,000, $100,000, and $123,000Coindesk, ^[3]. The current rally, fueled by "Uptober" sentiment and macroeconomic factors like expectations of Federal Reserve easing, has reinforced Bitcoin's role as a macro hedgeThe Block, ^[2]. Timothy Misir of BRN noted that October has historically been a strong month for Bitcoin, with positive returns in 10 of the last 12 yearsThe Block, ^[2].

BlackRock's dominance in the Bitcoin ETF space is expected to solidify as IBIT continues its trajectory toward $100 billion in AUM. Bloomberg Senior ETF Analyst Eric Balchunas highlighted that the fund is "a hair away" from this milestone, with only $2.2 billion remainingBeInCrypto, ^[1]. The fund's success underscores the institutionalization of crypto, with BlackRock leveraging its brand and infrastructure to capture a significant share of the market. Meanwhile, Ethereum ETFs, led by BlackRock's ETHA, have also seen robust inflows, adding $1 billion in OctoberThe Block, ^[2].