Bitcoin ETFs draw $1.18B in a day, near historic record amid rally

• US. spot Bitcoin ETFs log $1.18 billion inflows, second-largest ever.

• Bitcoin hits record high above $126,000 before easing slightly.

• Institutional buying through ETFs fuels rally amid “Uptober” optimism.

Spot Bitcoin exchange-traded funds (ETFs) in the United States registered their second-largest day of inflows ever on Monday, coinciding with Bitcoin’s surge to a new record high above $126,000.

Data from Farside Investors showed that the 11 US-listed spot Bitcoin ETFs pulled in a combined $1.19 billion in a single day, trailing only the $1.37 billion inflows recorded on November 7, 2024, following Donald Trump’s presidential election victory.

Monday’s surge brought total inflows for October to $3.47 billion in just four trading days.

Bloomberg ETF analyst James Seyffart noted on X that Bitcoin ETFs have now amassed approximately $60 billion in cumulative inflows since their launch last year — a reflection of sustained institutional interest in Bitcoin exposure.

BlackRock dominates ETF inflows

The BlackRock iShares Bitcoin Trust (IBIT) led the pack with an extraordinary $970 million in inflows on Monday.

The fund has now attracted $2.6 billion since the start of October and is nearing a historic milestone.

According to Nova Dius President Nate Geraci, the BlackRock ETF is close to crossing the $100 billion mark in assets under management (AUM), holding approximately 783,767 BTC valued at about $98.5 billion in Bitcoin and cash.

“The Vanguard S&P 500 ETF took more than 2,000 days to reach $100 billion in assets, while IBIT is on the verge of doing it in under 450 days,” Geraci observed, highlighting the unprecedented pace of capital accumulation.

Only 18 out of over 4,500 trading ETFs have surpassed $100 billion in AUM, he added.

Other major beneficiaries included the Fidelity Wise Origin Bitcoin Fund (FBTC), which saw $112 million in inflows, the Bitwise Bitcoin ETF (BITB) with $60 million, and the Grayscale Bitcoin Mini Trust (BTC) with $30 million.

Institutional momentum and the “debasement trade”

Bitcoin’s rally has been heavily driven by institutional participation through ETFs, allowing large investors to gain exposure without the need for direct custody.

Analysts suggest that retail participation remains limited, underscoring the role of institutional capital in the current bull phase.

The latest rally has also been supported by what traders term the “debasement trade” — a shift toward non-sovereign assets such as Bitcoin and gold amid the ongoing US government shutdown, which has delayed key economic data and heightened policy uncertainty.

The move into Bitcoin reflects a broader sentiment among investors seeking protection against potential monetary easing and inflationary pressures.

Bitcoin steadies after record high

After touching an all-time high of $126,186 on Monday, Bitcoin pulled back slightly due to profit-taking but remained firm.

On Tuesday, the cryptocurrency traded flat at around $123,427.9.

US spot Bitcoin ETFs recorded $3.2 billion in net inflows in the week ended October 3 — the second-largest weekly haul since their inception — including $985 million on October 3 alone.

Seasonal optimism, commonly referred to as “Uptober,” has also contributed to the market’s buoyant tone.

Historically, October has been a strong month for Bitcoin, and investors appear to be positioning accordingly.

Despite minor pullbacks, analysts note that the confluence of ETF demand, macroeconomic uncertainty, and seasonal strength continues to reinforce Bitcoin’s upward trajectory.