Record-Breaking Bitcoin ETF Inflows Expected as Institutions Rush In
Spot Bitcoin ETFs are heading for an unprecedented quarter as inflows accelerate, with Bitwise Asset Management projecting total investments to surpass $36 billion by year-end. Through the first three quarters of 2025, Bitcoin ETFs have already drawn $22.5 billion, and in the first four trading days of Q4 alone, they absorbed an additional $3.5 billion, pushing cumulative inflows to $25.9 billion. Bitwise’s CIO Matt Hougan expects the total to easily exceed $36 billion, fueled by a combination of institutional adoption, the currency “devaluation trade,” and Bitcoin’s price surge to $125,000 earlier this month before stabilizing around $122,700.
Institutional Expansion: Morgan Stanley, Wells Fargo, UBS, and Merrill Lynch Open Bitcoin ETF Access
For the first time, heavyweight financial institutions are directly enabling Bitcoin exposure within client portfolios. Morgan Stanley has introduced allocations of 2–4% for high-risk clients, while Wells Fargo, UBS, and Merrill Lynch are preparing similar approvals. These moves have unlocked significant pent-up demand among wealth managers who were previously restricted by internal compliance policies. Hougan emphasized that “real inflows are just beginning,” indicating that institutional portfolio adjustments could add another $10–12 billion before the end of Q4. This shift cements Bitcoin ETFs as mainstream investment vehicles rather than speculative products.
The “Devaluation Trade” Gains Momentum as Money Supply Expands 44% Since 2020
With the U.S. money supply (M2) expanding by 44% since 2020, investors are increasingly hedging against the declining purchasing power of fiat currencies. The “devaluation trade”—favoring assets that rise as currency weakens—has gained prominence among institutional strategists. Both gold and Bitcoin (BTC-USD) are leading global asset returns in 2025, signaling investor migration toward limited-supply assets. JPMorgan and other major banks have described this positioning as a structural portfolio shift rather than a cyclical bet, marking Bitcoin’s evolution into a macro hedge alongside gold.
BlackRock’s IBIT ETF Crosses $100 Billion AUM, Setting New Record Pace
The BlackRock iShares Bitcoin Trust (IBIT) continues to dominate inflows, capturing $899.4 million in a single session—its largest since Donald Trump’s election victory. IBIT now manages 791,346 BTC, equivalent to nearly $100 billion in assets, making it the fastest-growing ETF in financial history. Bloomberg’s ETF analysts project it will soon surpass the $100 billion threshold, a milestone reached by only 18 ETFs since 1993. The performance underscores not only IBIT’s dominance but also the scale of institutional engagement flowing into Bitcoin markets this quarter.
Bitcoin and Gold: 2025’s Top Performing Assets Amid Dollar Weakness
Bitcoin’s rally past $125,000 coincided with gold reaching $4,000 per ounce for the first time in history, both driven by a weakening U.S. dollar and declining bond yields. The 10% drop in the dollar since January—the steepest in four decades—has redirected global liquidity toward real and digital stores of value. Analysts attribute this shift to falling rates, rising fiscal deficits, and political uncertainty from the U.S. government shutdown, reinforcing Bitcoin’s growing role as a safe-haven asset. As institutional portfolios diversify away from treasuries, BTC’s market capitalization has surged to $2.42 trillion, accounting for 6.78% of the total crypto ETF market.
Ethereum ETFs See Record $420.8 Million Inflows While Bitcoin ETFs Briefly Cool
While Bitcoin ETFs recorded a brief $23.8 million outflow on October 7 following record inflows of $1.19 billion the previous day, Ethereum ETFs surged. BlackRock’s ETHA led the charge with $437.5 million in inflows, followed by Grayscale ETH with $5.48 million, lifting total Ethereum ETF assets to $30.86 billion. This marks the highest trading value for Ethereum ETFs in October, with $4.05 billion in total daily trading volume. As Bitcoin consolidates above $122,000, Ethereum’s price at $4,523 highlights growing demand for diversified crypto ETF exposure, particularly as institutions expand allocations across digital assets.
