Bitcoin News Today: Institutions Fuel Bitcoin ETF Boom: BlackRock's IBIT Surpasses VOO's AUM in 435 Days

Digital assets reached a record $48.7 billion in year-to-date inflows as Bitcoin exchange-traded funds (ETFs) continued to attract substantial capital, driven by institutional adoption and bullish market sentiment. U.S. spot Bitcoin ETFs recorded a $3.24 billion net inflow for the week ending October 4, 2025-the second-highest weekly inflow since their January 2024 launch, nearly matching the prior record of $3.38 billion set in November 2024. This surge, following a $902 million outflow the previous week, pushed Bitcoin's price above $123,996, marking a six-week high and reinforcing its role as a mainstream financial asset .

BlackRock's iShares Bitcoin Trust (IBIT) led the inflow wave, attracting $985.08 million in net inflows on October 3 alone, contributing to its status as the largest Bitcoin ETF with nearly $100 billion in assets under management (AUM). IBIT's success underscores the rapid institutionalization of Bitcoin, with BlackRock's ETF generating an estimated $244.5 million in annual revenue. By comparison, the next-fastest ETF to reach $100 billion in AUM, the Vanguard S&P 500 ETF (VOO), took 2,011 days, while IBIT achieved this milestone in just 435 days .

The inflow momentum has historically coincided with Bitcoin price peaks. For instance, large inflows on July 10 and 11, 2025, preceded a short-term peak of $123,000 on July 14. Similarly, the October 2025 inflow surge followed Bitcoin's ascent above $126,000, suggesting potential for further gains . Cumulative net inflows for Bitcoin ETFs now approach $60 billion since inception, with these products constituting 6.74% of Bitcoin's total market capitalization as of October 4 .

The broader cryptocurrency market also benefited, with combined spot and derivatives trading volume surging 7.58% to $9.72 trillion in August 2025, the highest monthly volume of the year. Gate Exchange reported a 98.9% volume increase to $746 billion, overtaking Bitget as the fourth-largest platform . Meanwhile, Bitcoin treasury companies, including MicroStrategy and Twenty One Capital, added 6,702 BTC worth $1.2 billion in the week ending October 4, signaling growing corporate confidence .

Ethereum ETFs also gained traction, with $1.3 billion in net inflows in the same week, rebounding from their worst outflows since inception the prior week. BlackRock's ETHA ETF led with $691.7 million in inflows, accounting for two-thirds of Ethereum ETF trading volume . Analysts noted that Ethereum's institutional adoption is accelerating, with its share of crypto fund inflows rising from 11% in 2024 to 29% in 2025 .

The ETF-driven capital influx has reshaped Bitcoin's market dynamics. Institutional buying now accounts for 1.86 million BTC in holdings by August 2025, with investors increasingly viewing Bitcoin as a hedge against inflation and a diversifier in traditional portfolios. Regulatory clarity, including the U.S. SEC's approval of spot Bitcoin ETFs and the repeal of SAB 121, has further reduced barriers to institutional participation .

Looking ahead, analysts project Bitcoin's price to continue its upward trajectory, with forecasts ranging from $133,000 to $200,000 by year-end 2025 if inflow momentum persists. However, challenges such as regulatory uncertainty, volatility, and liquidity gaps between 24/7 crypto markets and traditional trading hours remain. The U.S. government shutdown temporarily paused altcoin ETF approvals, creating bottlenecks for specific cryptocurrencies until resolved .

[1] U.S. BTC ETFs See $1B Inflows, Seen 6 Times Before (https://www.coindesk.com/markets/2025/10/07/u-s-bitcoin-etfs-log-usd1b-inflows-again-a-level-that-s-marked-local-tops-six-times-before)

[2] Bitcoin ETFs Fuel Record Inflows, Propelling Market Towards New All-Time Highs (https://markets.financialcontent.com/wral/article/marketminute-2025-10-4-bitcoin-etfs-fuel-record-inflows-propelling-market-towards-new-all-time-highs)

[4] Bitcoin ETF Inflows Hit 10-Month High as Institutional Money Floods In (https://coincentral.com/bitcoin-etf-inflows-hit-10-month-high-as-institutional-money-floods-in/)

[8] Crypto ETP Inflows in 2025 Surpass Entire 2024 Totals (https://icoholder.com/en/news/crypto-etp-inflows-in-2025-surpass-entire-2024-totals)