Bitcoin News Today: Trade War Fears Drive $9.7B Bitcoin ETF Volume, But Net Inflows Turn Negative

Bitcoin ETF trading volume surged to $9.7 billion in early October 2025, driven by escalating U.S.-China trade tensions and macroeconomic pressures, according to analysis of market data and institutional activity. The spike, observed across spot Bitcoin ETFs, reflects heightened volatility and strategic repositioning by investors amid fears of trade wars and currency debasement.

The surge was catalyzed by U.S. announcements of potential 60% tariffs on Chinese imports, which triggered sharp market corrections and amplified Bitcoin's role as both a high-beta asset and a hedge against fiat devaluation. BlackRock's iShares Bitcoin Trust (IBIT) alone accounted for over $6.9 billion in trading volume on October 10, its second-highest single-day total, according to a Bitwise analysis. This activity contrasted with muted net inflows, which totaled -$5.7 million on the same day, underscoring the distinction between gross trading volume and net capital accumulation.

Institutional access to Bitcoin has expanded significantly, with major wealth managers like Morgan Stanley and Wells Fargo enabling advisors to allocate to crypto, unlocking new demand, according to a CryptoSlate report. Bitcoin's price surge to over $125,000 and the "debasement trade"-favoring assets like gold and Bitcoin amid monetary expansion-fueled year-end momentum were also cited as drivers. However, the recent volatility revealed a shift in investor behavior: while ETFs remain a primary vehicle for BTC exposure, short-term speculative activity dominated over long-term accumulation, the Bitwise analysis found.

BlackRock's IBIT emerged as a standout performer, recording $134 million in inflows over two trading days despite broader ETF outflows. The fund's assets under management (AUM) approached $100 billion, surpassing traditional benchmarks like the Vanguard S&P 500 ETF in growth speed, according to a FinancialContent report. Meanwhile, other Bitcoin ETFs, including Fidelity's FBTC and Bitwise's NITB, faced outflows of $93.3 million and $115.6 million, respectively, on October 13.

The broader market context highlighted divergent institutional strategies. While IBIT maintained a 10-day inflow streak, Ethereum ETFs recorded $429 million in outflows, signaling a cooling in altcoin enthusiasm. On-chain data indicated that IBIT's holdings exceeded 804,944 BTC, valued at over $91.8 billion, surpassing Michael Saylor's Strategy treasury in BTC ownership.

Analysts attributed the ETF volume spike to a combination of macroeconomic uncertainty and structural shifts in liquidity. The "flight to volatility" during trade war fears amplified ETF turnover, with traders leveraging regulated, low-fee structures like IBIT to navigate rapid price swings, the Bitwise analysis noted. However, sustained price gains may depend on broader macroeconomic relief, as daily inflows above $750 million are needed to offset supply-side pressures.

The surge in Bitcoin ETF activity aligns with projections from Bitwise, which anticipates $120 billion in 2025 inflows and $300 billion in 2026, reported by Cryptopolitan. Regulatory clarity and institutional adoption, including potential SEC approvals for Ethereum and Solana ETFs, are expected to further normalize digital assets in traditional finance BlackRock’s Bitcoin ETF (IBIT) Shatters Records with $3.5B Inflows.