US spot Bitcoin exchange-traded funds recorded $3.24 billion in net inflows during the past week, according to Cointelegraph. The figure represents the second‑best weekly performance since the funds launched in January 2024. Data from SoSoValue shows the inflows nearly matched the record $3.38 billion set during the week ending November 22, 2024.
The surge follows a sharp reversal from the previous week's $902 million in outflows. Analysts attribute the turnaround to expectations of another Federal Reserve interest rate cut. The rate cut expectations improved investor sentiment toward risk assets like Bitcoin. Bitcoin's price briefly exceeded $123,996 on Friday, reaching its highest level in over six weeks. Blockworks reports US Bitcoin ETFs accumulated $2.2 billion in net inflows over four consecutive trading days.
Institutional Demand Drives Market Momentum
The strong inflow week demonstrates renewed institutional appetite for Bitcoin exposure through regulated products. Iliya Kalchev, an analyst at digital asset platform Nexo, told Cointelegraph that four‑week inflows approached $4 billion. At current absorption rates, fourth‑quarter flows could remove over 100,000 BTC from circulation. This amount exceeds double the new Bitcoin issuance during the same period.
We reported that BlackRock's Bitcoin ETF reached 700,000 BTC holdings worth $75.5 billion, accounting for 55 % of all US Bitcoin ETF assets. The fund generates approximately $187.2 million in annual fees, surpassing BlackRock's flagship S&P 500 ETF revenue despite managing nine times fewer assets. ETF absorption accelerates while long‑term holder distribution eases, helping Bitcoin build stronger support near key technical levels.
October historically ranks as Bitcoin's second‑best performing month, with average returns around 20 %. The month earns the nickname “Uptober” among cryptocurrency investors. Bitcoin averaged 46 % returns in November and 4 % in December based on CoinGlass data. Matt Mena from 21Shares noted the expected Fed rate cut as a major tailwind for continued Bitcoin momentum. The analyst projects Bitcoin could reach between $140,000 and $150,000 before year end.
Broader Market Context and Analyst Outlook
Bitcoin ETFs now function as the primary sentiment indicator for the cryptocurrency industry, according to market analysts. The products generate between $5 billion and $10 billion in daily trading volume on active days. Institutional investors continue expanding crypto exposure through these regulated investment vehicles. JPMorgan analysts project Bitcoin could reach $165,000 by late 2025, citing undervaluation relative to volatility‑adjusted gold levels.
Several macroeconomic events will influence Bitcoin's trajectory in coming weeks. Federal Reserve Chair Jerome Powell's upcoming speech and FOMC meeting minutes release could affect market direction. Investors also await the delayed US jobs report, with publication timing dependent on the ongoing government shutdown. The shutdown represents the first such occurrence since 2018.
The ETF inflow pattern reflects what some analysts call a “debasement trade” gaining traction among traditional finance institutions. Bitcoin benefits as both a digital gold hedge during fiscal uncertainty and as a risk asset when liquidity returns. Total cryptocurrency market capitalization approaches the $5 trillion threshold, representing less than 25 % growth from current levels. Market observers note fourth quarter 2024 saw a 63 % surge, with market cap climbing from $2.2 trillion to $3.6 trillion by year end.
The concentration of institutional Bitcoin holdings through ETF structures creates new market dynamics. Large funds controlling substantial portions of Bitcoin supply potentially affect price discovery mechanisms. Traditional financial institutions increasingly view Bitcoin as a permanent portfolio component rather than speculative allocation, changing long‑term dynamics for the cryptocurrency sector.