Key Highlights:
- Bitcoin spot ETF experienced second-highest weekly net inflows between September 29 to October 3, 2025.
- Ethereum spot ETF saw $1.3 billion in inflows, indicating increased institutional interest.
- Surging ETF inflows were the main catalysts that pushed Bitcoin’s price above the $125,000 mark.
Bitcoin (BTC) surged and hit a new all-time high above $125,000 on October 5, 2025, shattering records amid ETF inflows, renewed bullish sentiment and the arrival of “Uptober” – a month famous for big crypto market rallies. Last week Bitcoin spot ETF notched $3.24 billion in net inflows which is the second-highest weekly total ever, whereas, Ethereum spot ETFs managed to attract $1.3 billion with all nine funds reporting a positive flow of capital.
Massive Spot ETF Inflows Signal Bull Revival
Bitcoin spot ETFs saw $3.24 billion in net inflows last week, which pushed it to be the second-largest weekly total in their history. This pushed their combined net asset value to $164.5 billion, which is about 6.74% of BTC’s overall market cap. This move is an indication of how important ETFs have become to BTC’s liquidity and market flows.
Cumulative inflows since launch of the product have reached $60.05 billion, which indicates steady investor interest in regulated crypto investment products. Analysts are linking this surge to current economic uncertainty that is lingering and a stronger demand for alternative assets like Bitcoin which is viewed as a hedge against inflation.
Moreover, these inflows are spread across various issuers such as BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin BTC Fund led the gains. Analysts and observers are also pointing out that these tighter spreads and deeper liquidity in these ETFs are making them increasingly attractive to institutional investors.
Ethereum spot ETFs had a strong showing last week. It managed to bring in $1.3 billion in net inflows, according to SoSoValue. There are nine listed funds and all of them reported gains, which indicates broad and consistent investor demand throughout the market.
If the net assets of all these funds are combined, the figure comes out to be somewhere around $30.57 billion, which indicates a 5.58% of Ethereum’s total market cap. Since the launch of the product, there has been an inflow of $14.42 billion.
What’s Powering the “Uptober” Rally?
There are various reasons behind this recent rally:
US Government shutdown risk: The political gridlock in Washington has sparked risk-on sentiment. Investors are moving from traditional assets to Bitcoin and Ethereum as hedge plays, which solidifies the “debasement trade” narrative and inflation worries.
ETF Inflows momentum: Both Bitcoin and Ethereum spot ETFs saw renewed inflows in early October after September outflows. Bitcoin ETF inflows have now topped $60 billion, while Ethereum has now moved past the $14 billion mark.
Seasonal trends: October is usually considered to be BTC’s strongest month, due to which it has earned its nickname as “Uptober.” It has been observed that in the last 10 years, BTC has always rallied in Q4, which is usually supported by institutional demand.
All-Time High breakout: BTC’s new all-time high of $125,559.21 indicates that the buyers are now in charge and they are closing out on September’s slump and are setting up for a strong run in Q4.
Fear and Greed Index: Market Running Hot
As of today, October 6, 2025, the Crypto Fear & Greed index reads 71, which indicates a sense of greed within the market and extreme bullishness, high trading volumes,and positive price momentum. It also indicates that the rally has room to run more.
Over $4.5 billion flowed into Bitcoin and Ethereum spot ETFs last week which has increased liquidity, and indicates an increased investor confidence. With Bitcoin ETFs nearing 7% market penetration and Ethereum above 5%, sustained inflows could drive further price support and make way for new ETF products, solidifying their role as key bridges between traditional finance and crypto.
Also Read: Bitcoin UTXO Count Drops as BTC Hits All-Time High, Signaling Market Maturity
