Institutional demand surges as spot Bitcoin ETFs attract billions despite market jitters from Trump’s China tariff warning
Spot Bitcoin exchange-traded funds (ETFs) in the United States have maintained their “Uptober” momentum, recording $2.71 billion in net inflows over the past week, according to data from SoSoValue. The surge underscores renewed institutional confidence in digital assets even as broader markets reacted to geopolitical tensions.
Total assets under management (AUM) for U.S. Bitcoin ETFs rose to $158.96 billion as of Friday—representing roughly 7% of Bitcoin’s total market capitalization.
“Capital keeps flowing into BTC as allocators double down on the digital gold conviction trade. Liquidity is building now as the market momentum takes shape,” said Vincent Liu, Chief Investment Officer at Kronos Research.
Record-Breaking Inflows Mark ‘Uptober’ Strength
Monday proved to be the strongest day of the week, with $1.21 billion in net inflows — the second-largest single-day inflow since U.S. spot Bitcoin ETFs launched in January. Tuesday followed with another $875.6 million, reinforcing a robust appetite among asset managers and institutional buyers.
Despite the week’s strong gains, Friday saw a modest $4.5 million outflow after President Donald Trump confirmed plans for a 100% tariff on Chinese imports, triggering brief volatility in global markets.
BlackRock Dominates as Investors Stay the Course
BlackRock’s iShares Bitcoin Trust (IBIT) led all funds with $74.2 million in daily inflows and a cumulative $65.26 billion AUM, cementing its leadership among spot ETF issuers. Meanwhile, Fidelity’s FBTC and Grayscale’s GBTC saw respective outflows of $10.18 million and $19.21 million, highlighting rotation among institutional portfolios.
Analysts describe this surge as the opening of the floodgates for digital asset products. As of late August, nearly 100 crypto-linked ETF proposals awaited regulatory decisions — signaling that Wall Street’s crypto adoption curve is far from over.
“Trump’s tariff threat looks more like a negotiation tactic than a policy pivot — classic pressure play,” Liu explained. “Markets may flinch short term, but smart money knows the game: macro noise, conviction unchanged.”
The “Uptober” rally has also sparked a wave of new ETF applications. Over the past two months, 31 crypto ETF filings have reached the U.S. Securities and Exchange Commission, 21 of them submitted in just the first eight days of October.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.