Bitcoin News Today: Institutional Demand Transforms Bitcoin into $149B Mainstream Asset

BlackRock's Bitcoin ETFs have driven a record surge in institutional demand for the cryptocurrency, with net inflows totaling $2.25 billion over four consecutive days in late September 2025, according to market data. The firm's iShares Bitcoin Trust (IBIT) led the charge, amassing $466.55 million in a single session, pushing its cumulative inflows to $61.84 billion. This marks a significant acceleration in Bitcoin's ETF-driven liquidity, with BlackRock's product now managing $93.95 billion in assets under management (AUM), representing 62.25 million shares traded on NASDAQ.

The inflows have coincided with Bitcoin's price rebound to above $120,000, reinforcing the asset's integration into traditional finance. Analysts attribute the momentum to the "flywheel effect," where growing ETF adoption fuels further institutional participation. As of September 24, U.S. Bitcoin ETFs collectively held $149.7 billion in assets, or 6.62% of Bitcoin's total market cap. BlackRock's dominance in the sector is underscored by its 746,810 BTC holdings, equivalent to 3.3% of the circulating supply.

The ETF-driven demand has also reshaped Bitcoin's liquidity landscape. Data from HODL15Capital shows that U.S. Bitcoin ETPs now hold over 1.47 million BTC, or 7% of the capped supply, with BlackRock and Fidelity leading the accumulation. This structural demand has stabilized Bitcoin's price, reducing volatility compared to earlier cycles. Technical indicators, including a Relative Strength Index (RSI) of 64.38 and a widening MACD histogram, suggest continued upward pressure.

While Bitcoin ETFs have attracted $161.03 billion in total inflows since inception, Ethereum ETFs have lagged, recording $1.06 billion in four days but facing $296 million in combined outflows. This divergence highlights Bitcoin's entrenched role as the primary institutional vehicle for crypto exposure. Meanwhile, the U.S. Securities and Exchange Commission (SEC) is reviewing 92 additional crypto ETF applications, including Solana and XRP products, with a 95% approval probability for Solana-based offerings this year.

The growth in ETF inflows has also influenced broader market dynamics. Corporate treasuries, such as DCC Enterprises, have added 1,058 BTC to their holdings, reflecting a strategic shift toward Bitcoin as a reserve asset. Institutional flows, however, remain fragile, with weekly inflows declining 54% to $931.4 million in late September amid Bitcoin's retracement below $110,000. Analysts caution that sustained inflows above $900 million per week are critical to maintaining bullish momentum.

Despite short-term volatility, the long-term trajectory of Bitcoin ETFs remains robust. BlackRock's IBIT has seen 800% growth in AUM since its launch, with $87.2 billion in assets as of September 24. This growth has coincided with a tightening of Bitcoin's supply float, as 74% of circulating BTC now remains illiquid (not moved in ≥2 years). On-chain metrics, including a Network Value to Transactions (NVT) ratio of 1.51 and a MVRV ratio of 2.3×, further validate the asset's valuation stability.

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