Flows to Bitcoin Exchange-traded funds (ETFs) are on track to set a new quarterly record, according to crypto asset manager Bitwise, which expects a sharp rise in the fourth quarter as institutional access broadens, macroeconomic winds strengthen and prices climb.
Earlier this year, Bitwise predicted that Bitcoin ETF inflows in 2025 would surpass the record of $36 billion set in the first year.
With $22.5 billion already recorded through September, a strong finish could push totals well past that mark, the company said in a report released Tuesday.
A major catalyst came on October 1, when Morgan Stanley (MS) authorized its 16,000 advisors, overseeing $2 trillion in assets, to allocate to crypto, Matt Hougan, Bitwise’s chief investment officer, said in the report. Wells Fargo (WFC) has done the same, and others like UBS (UBS) and Merrill Lynch may follow.
Although these platforms generally evolve gradually, demand from advisors has been increasing for months, the report said.
Macroeconomic forces are also adding momentum. The so-called “depreciation trade,” favoring gold and bitcoin amid currency dilution, became widespread after the U.S. money supply increased 44% since 2020, Hougan said.
And the Bitcoin rally amplifies all of this. The cryptocurrency surpassed $100,000 to trade above $125,000, up 9% in early October. The world’s largest cryptocurrency was trading around $123,500 at press time.
Historically, price surges have attracted new ETF inflows, the report notes.
The fourth quarter is already off to a strong start with $3.5 billion in net flows over the first four trading days, bringing the annual total to $25.9 billion. With two months to go, a record seems within reach, the report adds.
Learn more: Citi sees Bitcoin hitting $181,000 in 2026 as ETF flows drive crypto higher
