Bitcoin ETF Inflows Reach October High as Institutional Demand Returns

Strong ETF inflows into Bitcoin and Ethereum point to renewed institutional buying and improving risk appetite.

U.S. spot Bitcoin exchange-traded funds saw a sharp pickup in inflows on Tuesday, marking the strongest daily demand since early October. Experts believe the trend signals a return of institutional buyers after a period of slow activity. Bitcoin and Ethereum prices rose as capital flowed back into ETFs tied to the two largest digital assets.

Bitcoin ETFs See $753.7M Inflows as Institutional Buying Returns

According to data from SoSoValue, U.S. spot Bitcoin ETFs posted $753.7 million in net inflows on Tuesday, the highest daily figure since October 7. Buying activity centered on major issuers, led by Fidelity, whose FBTC fund attracted $351.36 million. Bitwise followed with $159.42 million into BITB, while BlackRock added $126.27 million through IBIT.

Image Source: SoSoValue

Additional inflows came from ARKB with $84.88 million. Smaller amounts went into Grayscale’s Bitcoin trust at $18.80 million, VanEck’s HODL with $10 million, and WisdomTree’s BTCW with $2.99 million.

Several other spot Bitcoin funds reported flat flows during the session, suggesting inflows were concentrated rather than broad-based.

As of press time, BTC is hovering near $95,084 after climbing over 3.25% over the past day. The OG coin posted 16/30 green trading days, pointing to steady upward pressure alongside ETF demand.

Institutional Buying Lifts Ethereum ETFs, Adds $130 Million in One Day

Nick Ruck, director at LVRG Research, said renewed inflows show investors reallocating capital after a period of caution late last year. He described current conditions as a reset following last quarter’s pullback, with institutional buyers returning as risk appetite improves.

Several factors stood out behind the renewed inflows:

• Strong ETF demand absorbed the available Bitcoin supply beyond daily miner output
• Improved inflation data raised expectations for future interest rate cuts.
• Progress on U.S. crypto legislation reduced regulatory uncertainty.
• Spot market buying, rather than heavy leverage, drove recent price moves.

Like Bitcoin, Ethereum-based investment products pulled in $130 million in net inflows across five funds. BlackRock’s ETHA led with $53.31 million, followed by Grayscale’s Ethereum fund at $35.42 million.

Bitwise’s ETHW brought in $22.96 million, while Fidelity’s FETH added $14.38 million. Grayscale’s ETHE posted a smaller $3.93 million, with other funds reporting no changes.

Image Source: SoSoValue

Ethereum has climbed over 5% to trade around $3,293 following a strong daily outing. Broader market sentiment remained positive, supported by strong institutional and retail activity.

Vincent Liu, chief investment officer at Kronos Research, linked the inflows to clearer macro signals.

“[The rally] is driven by sustained ETF inflows absorbing supply well beyond miner issuance, creating a structural tailwind. Improving regulatory clarity and the unwind of over-leveraged short positions further accelerated price action, with the rally notably led by spot demand rather than leverage,”

Liu said.

In his view, sustained ETF demand has played a central role in recent price strength, with absorption of supply and reduced short positioning supporting the rally.