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Institutional access, a surging debasement trade, and bitcoin’s rally above $125,000 are setting the stage for the strongest quarter ever for ETF flows.
Updated Oct 9, 2025, 1:58 p.m. Published Oct 9, 2025, 1:22 p.m.
Flows into bitcoin BTC$121,863.11 exchange-traded funds (ETFs) are on track to set a new quarterly record, according to crypto asset manager Bitwise, which expects a surge in Q4 as institutional access broadens, macro tailwinds strengthen and prices climb.
Earlier this year Bitwise predicted that 2025 bitcoin ETF inflows would surpass the record $36 billion set in year one.
With $22.5 billion already logged through September, a strong finish could push totals well past that mark, the firm said in a report on Tuesday.
A major catalyst came Oct. 1, when Morgan Stanley (MS) cleared its 16,000 advisers, overseeing $2 trillion in assets, to allocate to crypto, Bitwise chief investment officer Matt Hougan said in the report. Wells Fargo (WFC) has done the same, and others like UBS (UBS) and Merrill Lynch may follow.
While such platforms typically move gradually, demand from advisers has been building for months, the report said.
Macro forces are also adding momentum. The so-called “debasement trade,” favoring gold and bitcoin amid currency dilution, has gone mainstream after U.S. money supply surged 44% since 2020, Hougan said.
And bitcoin’s rally is amplifying it all. The cryptocurrency broke through $100,000 to trade above $125,000, up 9% in early October. The world's largest cryptocurrency was trading around $123,500 at publication time.
Historically, price surges have drawn fresh ETF inflows, the report noted.
The fourth quarter is already off to a strong start with $3.5 billion in net flows in the first four trading days, lifting year-to-date totals to $25.9 billion. With two months to go, a record appears well within reach, the report added.
Read more: Citi Sees Bitcoin Hitting $181K in 2026 as ETF Flows Drive Crypto Higher
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
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