Bitcoin News Today: SEC Delays Halt Altcoin ETFs as $1.3B Floods Bitcoin and Ether Funds

Bitcoin and Ether exchange-traded funds (ETFs) have attracted a combined $1.3 billion in inflows over the past seven days, marking a sustained surge in institutional and retail demand for crypto-backed assets. The latest data from SoSoValue and CoinGlass shows Bitcoin ETFs alone secured $627 million in net inflows on October 2, with BlackRock's IBIT leading the charge by capturing $466.5 million. This propelled IBIT's total inflow to $61.8 billion since its launch, while Fidelity's FBTC added $89.6 million, bringing its cumulative haul to $12.6 billion. Ether ETFs followed suit, pulling in $307 million on the same day, with BlackRock's ETHA securing $177 million and Fidelity's FETH collecting $60 millionBitcoin, Ether ETFs rebound with nearly $1B in fresh …^[4]. The combined inflows have pushed Bitcoin ETFs to $161 billion in assets under management, representing 6.7% of the total Bitcoin market capBitcoin, Ether ETFs rebound with nearly $1B in fresh …^[4].

The momentum reflects broader market optimism amid Bitcoin's price surge to $120,460 and Ether's rebound to $4,532, driven by renewed demand for regulated crypto exposure. Bitcoin ETFs have seen $22.8 billion in year-to-date inflows, while Ether ETFs have drawn $13.6 billion since their inception in July 2024Ether ETFs capture 10x more inflows than Bitcoin in 5 …^[5]. Analysts attribute the inflows to the SEC's recent adoption of streamlined crypto ETF listing rules, which reduced approval timelines from months to 75 days. However, the U.S. government shutdown has delayed new product approvals, including applications for Solana, XRP, and Dogecoin ETFs. The SEC's contingency plan has limited staff to handling emergencies, effectively freezing the review processBitcoin, Ether ETFs rebound with nearly $1B in fresh …^[4].

The inflow trend contrasts with earlier volatility in altcoin ETFs, such as Canary Capital's proposed HBAR and Litecoin ETFs, which remain pending approval. While HBAR's 0.95% fee is higher than Bitcoin ETFs, Bloomberg analyst Eric Balchunas noted such fees are typical for niche crypto productsCanary Capital’s HBAR ETF nears SEC approval - Cryptopolitan^[1]. The SEC's delayed review for HBAR-now pushed to November 2025-highlights procedural bottlenecks amid a surge in applicationsCanary Capital’s HBAR ETF nears SEC approval - Cryptopolitan^[1]. Meanwhile, GraniteShares and other firms have filed leveraged ETFs for Solana and XRP, signaling institutional confidence in altcoin exposure despite regulatory uncertaintyLitecoin, HBAR and more crypto ETFs ‘at the goal line’ as …^[7].

Market participants are closely watching the SEC's resumption of full operations, which could trigger a wave of new crypto ETF launches. Bloomberg's James Seyffart described Litecoin and HBAR ETFs as "at the goal line," noting that their filings represent final steps before approvalLitecoin, HBAR and more crypto ETFs ‘at the goal line’ as …^[7]. The pending products could expand institutional access to altcoins, with analysts forecasting a 90% approval probability once the SEC resumes reviewsCanary Capital Nears Greenlight for $1B Litecoin and Hedera Spot …^[3]. However, the government shutdown has delayed critical deadlines, including the October 2 review date for Litecoin's ETFCanary Capital Nears Launch of Litecoin and HBAR ETFs as SEC …^[2].

The ETF inflows have also amplified Bitcoin and Ether's dominance in the crypto market. Bitcoin's market capitalization now accounts for 55% of the total crypto market, while Ether holds the largest share of stablecoin and tokenized real-world assetsEther ETFs capture 10x more inflows than Bitcoin in 5 …^[5]. Institutional investors, including Goldman Sachs, have become major holders of Ether ETFs, with $1.3 billion in exposure reportedEther ETFs capture 10x more inflows than Bitcoin in 5 …^[5]. The trend underscores a shift toward regulated crypto products, as investors seek diversification beyond traditional equities.

As the SEC navigates its backlog of applications, the $1.3 billion inflow streak for Bitcoin and Ether ETFs highlights growing acceptance of crypto in mainstream finance. The outcome of pending approvals for altcoin ETFs and leveraged products could further reshape the market, but immediate progress hinges on the government's return to full operations.