Key Points
- Last week, Bitcoin ETFs recorded $2.71 billion in net inflows, indicating strong institutional confidence.
- BlackRock’s iShares Bitcoin Trust (IBIT) contributed $2.63 billion, leading the inflow.
Between October 6 and 10, Bitcoin Exchange Traded Funds (ETFs) recorded a net inflow of $2.71 billion. This reflects a significant level of institutional confidence in the long-term potential of cryptocurrency.
The leading contributor to this was BlackRock’s iShares Bitcoin Trust (IBIT), which accounted for $2.63 billion of the total inflow. According to data from SoSoValue, the net assets of IBIT now stand at a substantial $94 billion.
Continued Investor Interest in BTC ETFs
Bitcoin ETFs have remained a dominant factor in investor sentiment throughout October. The market has seen inflows every day of the month thus far, with the exception of a minor $4.5 million outflow on October 10. This has resulted in total October inflows exceeding the $5 billion mark in just two weeks.
This influx of investment comes amidst optimism for an “Uptober” rally, despite short-term volatility. Bitcoin briefly fell below the critical $110,000 level on October 11 following an announcement about US-China tariffs that shook global markets. However, the cryptocurrency quickly rebounded and is now trading around $115,570, reflecting a 3.5% increase in the past 24 hours. According to CoinMarketCap, Bitcoin’s 24-hour trading volume has also risen 15% to approximately $92 billion.
Liquidity Stress in the Market
Currently, the market is experiencing its highest levels of liquidity stress since early 2025, particularly on Binance, the world’s most liquid cryptocurrency exchange. This indicates that executing large trades without impacting price may be challenging, suggesting a liquidity shock due to stop-loss triggers and leveraged liquidations.
Data from CryptoQuant shows that the liquidity stress index is currently at 0.2867, one of the highest readings of the year. A contributor to CryptoQuant suggests that the recent price drop indicates a rapid transfer of liquidity from short-term traders to institutional holders. Analysts propose that large investors may have capitalized on the drop to accumulate Bitcoin at support levels.
Future of BTC Price
Data from Glassnode shows that funding rates across major derivatives exchanges have dropped to bear-market lows. Between October 10 and 12, over $20 billion in positions were wiped from exchanges, before recovering slightly to $74 billion.
While some crypto market traders are uncertain whether this marks the end of the correction or the start of a deeper retracement, many analysts remain optimistic. They predict that Bitcoin could surge to $150,000 before the end of the quarter.
