Bitcoin News Today: Institutions Drive $3.2B Bitcoin ETF Inflows as Debasement Trade Gains Momentum

Bitcoin's performance in a shifting macroeconomic environment has drawn significant attention as institutional adoption and ETF inflows accelerate, according to recent analyses. U.S. spot Bitcoin exchange-traded funds (ETFs) recorded their largest weekly inflows of 2025, totaling $3.24 billion, driven by surging institutional demand and favorable market conditions. This follows a record $1.21 billion daily inflow on October 6, marking the single-largest day of inflows this year and contributing to Bitcoin's rally above $125,000 . BlackRock's iShares Bitcoin Trust (IBIT) dominated the inflow surge, capturing $791.55 million on October 3 alone, underscoring its dominance in the ETF landscape .

The macroeconomic backdrop has amplified Bitcoin's appeal as a hedge against currency devaluation. The so-called "debasement trade," which favors assets like Bitcoin and gold amid monetary expansion, has gained mainstream traction. U.S. money supply has surged 44% since 2020, prompting investors to seek alternatives to fiat currencies. Analysts at Bitwise note that Bitcoin's price surge-climbing from $100,000 to over $125,000-has reinforced this trend, with ETF inflows historically aligning with price momentum .

Institutional access to crypto has expanded significantly, unlocking new capital flows. Major wealth managers such as Morgan Stanley and Wells Fargo have granted their advisers access to crypto allocations, with Morgan Stanley's $2 trillion in assets under management now including Bitcoin exposure. Bitwise predicts Q4 ETF inflows could surpass the $36 billion record set in the first year of Bitcoin ETFs, with $25.9 billion already added year-to-date . This institutional participation has been bolstered by regulatory developments, including the U.S. SEC's easing of ETF listing requirements, which has spurred a wave of applications for crypto-based products .

Bitcoin's price trajectory has been further supported by technical and on-chain metrics. The cryptocurrency's market capitalization briefly exceeded $2.5 trillion, and on-chain data indicates a shift from distribution to accumulation phases among long-term holders. Centralized exchange holdings continue to decline, signaling reduced selling pressure, while open interest resets after key options expirations suggest more organic price discovery . Analysts at JPMorgan and Standard Chartered have projected Bitcoin could reach $165,000 or $200,000 by year-end, citing the debasement trade and institutional inflows as key drivers .

Political and regulatory developments also play a critical role. The U.S. government shutdown in September raised questions about regulatory timelines, with the SEC and other agencies temporarily halting operations. However, the passage of the GENIUS Act in July 2025 has provided a framework for stablecoin regulation, aligning with EU's MiCA rules to reduce arbitrage risks. While uncertainties persist, analysts argue that Bitcoin's role as a decentralized store of value is strengthening amid political instability and inflationary pressures .

Source: [1] Coindesk (https://www.coindesk.com/markets/2025/10/09/bitcoin-etf-inflows-poised-to-smash-records-in-q4-says-crypto-asset-manager-bitwise) [2] Yahoo Finance (https://finance.yahoo.com/news/bitcoin-etfs-post-biggest-inflow-113215131.html) [4] Coinpedia (https://coinpedia.org/news/bitcoin-price-nears-all-time-high-with-985m-etf-inflows/) [5] Coingape (https://coingape.com/bitcoin-etfs-see-2025-record-weekly-inflows-of-3-2b-as-btc-eyes-new-ath/) [6] FxLeaders (https://www.fxleaders.com/news/2025/10/06/bitcoin-surges-amid-dollar-weakness-technical-analysis-points-to-150k-target/) [8] World Economic Forum (https://www.weforum.org/stories/2025/09/us-genius-act-eu-mica-convergence-crypto-rules/) [9] Forbes (https://www.forbes.com/sites/digital-assets/2025/10/01/bitcoin-adoption-and-regulatory-developments-crucial-as-october-kicks-off/)