Bitcoin News Today: Institutional Bitcoin Bet: ETFs Attract $60B, Redefining Mainstream Finance

Bitcoin ETFs saw record daily inflows of $1.19 billion on October 6, 2025, the largest single-day inflow of the year, driven by BlackRock's iShares Bitcoin Trust (IBIT), which accounted for $969.95 million of the totaltitle1^[1]. This surge propelled Bitcoin to an all-time high above $126,000, with the cryptocurrency gaining nearly 9% in a weektitle1^[1]. IBIT, BlackRock's most profitable ETF, has generated $244.5 million in annual revenue, surpassing older funds like the 25-year-old Core S&P 500 ETF (IVV) despite managing only $97.8 billion in assets under management (AUM) compared to IVV's $700 billiontitle1^[1]. The fund is now just $2.2 billion from reaching $100 billion in AUM, a milestone that would make it the fastest-growing ETF in history, outpacing the 2,011-day journey of the Vanguard S&P 500 ETF (VOO) to the same leveltitle1^[1].

The inflow momentum has been relentless, with Bitcoin ETFs collectively attracting $3.2 billion in net inflows for the week ending October 6-second only to the $3.38 billion record set in November 2024title2^[2]. Since the launch of U.S. spot Bitcoin ETFs in January 2024, total inflows have approached $60 billion, with IBIT alone pulling in $61.376 billiontitle2^[2]. This growth has been fueled by institutional demand for regulated Bitcoin exposure, with IBIT's 0.25% management fee generating substantial revenue for BlackRock. Analyst Eric Balchunas noted that IBIT's performance reflects a "mainstream acceptance of crypto within traditional finance," as institutional investors increasingly allocate capital to Bitcointitle3^[3].

The ETF's rapid ascent has disrupted traditional fund rankings. IBIT recently entered the top 20 largest ETFs by AUM with $90.7 billion, trailing only the Vanguard Dividend Appreciation ETF (VIG) and the Technology Select Sector SPDR Fund (XLK)title4^[4]. Analysts predict it could crack the top 10 by December 2026 if current inflow trends persisttitle4^[4]. This growth is unprecedented: VOO took 2,011 days to reach $100 billion, while IBIT achieved 90% of that figure in 435 daystitle1^[1]. The fund's dominance is further underscored by its $405.5 million inflow on October 1, the largest for any ETF that day, as it extended a three-day streak of positive flowstitle4^[4].

Bitcoin's price action has closely mirrored ETF inflows. The cryptocurrency's surge past $125,000 coincided with the ETFs' record inflows, driven by institutional buying and reduced outflows in Septembertitle2^[2]. Standard Chartered analysts forecast Bitcoin could reach $200,000 by year-end 2025 if inflows continuetitle2^[2]. However, challenges remain, including regulatory uncertainty and Bitcoin's inherent volatility. The U.S. government shutdown temporarily stalled new ETF approvals, though this has reinforced Bitcoin's safe-haven appealtitle2^[2].

Looking ahead, BlackRock plans to expand its Bitcoin ecosystem with the iShares Bitcoin Premium Income ETF, a covered call product designed to generate yield through options overlaystitle4^[4]. This "sequel" to IBIT aims to offer investors diversified exposure within the Bitcoin market. Meanwhile, analysts like Nate Geraci highlight IBIT's potential to redefine institutional investing, noting its growth trajectory is "easily the fastest ever"title1^[1]. As Bitcoin ETFs continue to attract capital, their role in reshaping the crypto market-and Bitcoin's integration into mainstream finance-remains a focal point for investors and regulators alike.