The month of October, often called “Uptober” by crypto traders, is living up to its reputation. Bitcoin (BTC) rose above $120,000 on October 2, bringing new energy to U.S. exchange-traded funds (ETFs). Leading the rally is BlackRock iShares Bitcoin Trust (IBIT), which pulled in over $1 billion across three straight trading days.
IBIT Surges Into Top 10 as Ethereum ETFs Gain Momentum
On Thursday alone, IBIT accounted for $4.3 billion of the $5.6 billion traded across Bitcoin ETFs, pushing it into the top 10 most‑traded ETFs in the U.S. According to Bloomberg’s Eric Balchunas, the fund now sits alongside household names like SPY, QQQ, and GLD.
IBIT’s assets under management (AuM) also climbed back above $90 billion this week, pushing it into the top 20 U.S. ETFs by size.
Furthermore, Ethereum ETFs are also gaining traction. BlackRock’s ETHA led a four‑day streak of $485 million in inflows. This helped push cumulative flows into U.S. Ethereum products past $14 billion since their debut in July 2024.
Shifting Power in the Options Market
Perhaps the most surprising development is IBIT’s sudden rise in the options market. Following last Friday’s expiry, open interest in IBIT options climbed to $38 billion, overtaking Deribit’s $32 billion for the first time.
For years, Deribit, now owned by Coinbase after a $2.9 billion acquisition, was the undisputed leader in Bitcoin derivatives. The shift marks a turning point for crypto markets.
The renewed demand came despite IBIT facing outflows of $46.6 million earlier in the week. Its rebound added to a broader surge across U.S. Bitcoin ETFs, which collectively attracted $2.25 billion this week. Together, Bitcoin ETFs have pulled in nearly $60 billion since launching in January 2024.
The “Uptober” Effect and Broader Market Rally
Bitcoin’s big jump this week shows both seasonal trends and overall market mood. October has been its best month in 10 of the past 12 years, and this year it is already up 5.41 % in just the first two days.
The rally comes as U.S. equities and gold also set new records this week. Analysts say weak labor data and ongoing political gridlock are strengthening expectations of the Federal Reserve easing. This is boosting both risk assets like Bitcoin and safe havens like gold.
Recent comments from President Trump have also added fuel to the rally. Trump shared his intention of growing the U.S. economy out of debt and possibly taxpayer rebates funded by tariff revenue.
This has added to the bullish sentiment driving both Bitcoin and gold to trade near historic highs. As of October 3, Bitcoin is trading around $120,388, up 1.4 % in the last 24 hours, while Ethereum is trading at $4,478, with a 1.9 % daily gain, according to CoinMarketCap data.