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- Bitcoin hit a record high above $125,000, driven mainly by ETF inflows.
- Institutions are buying more BTC than miners can produce daily.
- ETF holdings now account for over 7% of Bitcoin’s total supply.
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Bitcoin’s latest rally past $125,000 marks yet another record in 2025, but analysts say the surge wasn’t fueled by corporate treasuries — it was exchange-traded funds (ETFs) that did the heavy lifting. While Bitcoin treasury companies added about 6,700 BTC (roughly $1.2 billion) last week, spot Bitcoin ETFs absorbed nearly $3.24 billion in inflows, almost matching their record week from late 2024.
Vincent Liu of Kronos Research told Cointelegraph the jump was “sparked by ETF inflows,” adding that a tight exchange supply, weaker dollar, and broader macro uncertainty amplified the move. Institutional investors are now acquiring Bitcoin faster than miners can produce it — a signal of growing scarcity and long-term conviction.
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Institutional Demand Tightens Supply
On average, miners generate around 900 BTC per day, while institutions and ETFs collectively buy over 3,000 BTC daily. That imbalance has created a structural squeeze in supply. Binance executive Matt Poblocki noted that the market is consolidating around “blue-chip assets like Bitcoin,” reflecting both stability and maturity.
“Bitcoin’s all-time high is not just another rally — it’s evidence of a structural shift,” Poblocki said. “Institutional inflows and regulatory clarity are embedding Bitcoin deeper into the global financial system.”
Analysts See ETF Momentum Driving Q4
Analysts, including Will Clemente III and Eric Balchunas, have also credited ETFs for the rally. Balchunas highlighted that ETFs brought in $3.3 billion in a single week and $24 billion year-to-date, calling the trend “wild.”
Looking ahead, experts see ETF-driven accumulation continuing to push prices higher. Liu predicts Bitcoin’s fourth-quarter performance will hinge on “institutional adoption, macro tailwinds, and shrinking supply.”
Also Read: Bitcoin Surge Continues: Institutional Buying Pushes BTC Toward $134,000 Target
Currently, Bitcoin ETFs hold 1.5 million BTC, representing 7.2% of the total supply, while corporate treasuries hold another 1.4 million coins. Together, these entities now control nearly 14% of all Bitcoin in circulation — a clear sign that institutional dominance is shaping the next phase of the bull cycle.
The ETF Era Has Arrived
Bitcoin’s latest record isn’t a speculative spike — it’s the result of sustained institutional confidence. As ETFs continue to absorb supply and macro conditions favor hard assets, the stage is set for a potentially explosive Q4.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
