US Bitcoin ETFs Kick-Off First “Uptober” Week With $3.2 Billion Inflows

US-listed spot Bitcoin exchange-traded funds (ETFs) kicked off the highly bullish month of October with a bang after recording the second-best weekly inflows since their launch in January 2024. 

The funds regulated by the US Securities and Exchange Commission (SEC), offering retail and institutional investors exposure to BTC’s price performance without requiring them to hold the digital asset directly, recorded a cumulative net positive inflow of $3.2 billion during the first trading week of “Uptober” – a term used by the crypto community to describe the historically positive performance of bitcoin and other digital assets in October.

Bitcoin Spot ETFs Record Second-Best Week with $3.2 Billion Inflow, as BTC Reclaims $120,000

According to data from SoSoValue, this figure nearly matched the ETFs’ record-setting inflow figure of $3.38 billion in the week ending November 22, 2024. It also marks a sharp rebound from the previous week’s $902 million in outflows from the 12 funds trading on the Nasdaq, NYSE, and CBOE exchanges.

Analysts attributed this turnaround to growing expectations of the U.S. Federal Reserve further slashing its headline interest rate on the dollar, which improved sentiment for risk assets like crypto and equities, and the ongoing U.S. government shutdown, which occurred after Republican and Democrat lawmakers failed to agree on a budget bill to fund the federal government’s operations beyond September 30, 2025. These factors coincided with bitcoin’s price rising back above $120,000 for the first time since mid-August as the “Uptober” narrative gains momentum.

Iliya Kalchev, dispatch analyst at digital asset platform Nexo, said the increased odds of a rate cut by the Fed have triggered a sentiment shift that has attracted renewed investor demand for Bitcoin ETFs, with four-week inflows into the funds nearing $4 billion. He noted that at this rate, cumulative flows during Q4 2025 could remove over 100,000 BTC, worth $12.22 billion at current rates, from circulation. This figure is more than double the expected new issuance.

Kalchev also added that while ETFs are absorbing the bitcoin supply, long-term holder distribution is easing, helping the world’s largest cryptocurrency by market capitalization build a “stronger base” near key technical support levels. Continued inflows into spot Bitcoin ETFs may provide significant tailwinds for BTC in October, which is regarded as its second-best month in terms of average historical returns, hence the name “Uptober”.

ETFs Serve as the “Clearest Sentiment Barometer” for Bitcoin’s Price

This week’s $3.2 billion inflow saw bitcoin’s price hit $123,996, a level last seen six weeks ago on August 14. When markets closed on Friday, BlackRock’s Nasdaq-listed iShares Bitcoin Trust ETF (IBIT) attracted $791.55 million, followed by Fidelity Investments’ FBTC with $69.58 million, and Ark & 21Shares’ ARKB with $35.48 million, making up the top three.

Grayscale’s Bitcoin Trust ETF (GBTC) and Bitcoin Mini Trust ETF (GBTC), Ark Invest’s ARKB, Bitwise’s BITB, and VanEck’s HODL added a combined $105.44 million to the total.

Cumulative inflows since the bitcoin ETFs began trading on Wall Street in January 2024 now stand at $60.05 billion, while the total net assets held by the funds are worth $164.50 billion, representing 6.74% of Bitcoin’s $2.43 trillion market cap.

Klachev pointed out that the ETFs now serve as the “clearest” sentiment barometer for the crypto market. He also noted that October is showing signs of an early Q4 breakout that will be powered by ETF inflows, seasonal strength, and dovish macro conditions.

Investors Looking Forward to Key Events Next Week to Assess Bitcoin’s “Uptober” Performance 

However, Bitcoin and the broader market’s momentum will depend on several key events scheduled next week, starting with the Federal Reserve Chair Jerome Powell’s upcoming speech and the release of the minutes from the Federal Open Market Committee (FOMC) meeting. Investors are also looking forward to the U.S. jobs report, which has been delayed due to the government shutdown. Its publication date depends on the length of the shutdown.

Meanwhile, there is growing confidence that bitcoin will perform strongly in October. According to data from CoinGlass, BTC averaged monthly returns of around 20% in October, 46% in November, and around 4% in December, reflecting strong returns during the final quarter of the year.

At the time of writing, Bitcoin (BTC) is trading at $122,126, up 1.44% in the last 24 hours.