{"id":16671,"date":"2025-10-04T19:11:23","date_gmt":"2025-10-04T17:11:23","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=16671"},"modified":"2025-10-04T19:11:23","modified_gmt":"2025-10-04T17:11:23","slug":"us-spot-etfs-ignite-an-exciting-uptober","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/10\/04\/us-spot-etfs-ignite-an-exciting-uptober\/","title":{"rendered":"US Spot ETFs Ignite an Exciting ‘Uptober’"},"content":{"rendered":"

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Currently in cryptocurrency, US-listed spot Bitcoin exchange-traded funds (ETFs) commenced October with billions in inflows, a crypto executive expected the Bitcoin price cycle to persist, and the United Kingdom\u2019s Financial Conduct Authority (FCA) is set to revoke its prohibition on crypto exchange-traded notes (ETNs) for retail investors.<\/p>\n

Bitcoin ETFs initiate \u201cUptober\u201d with $3.2 billion in second-highest week on record<\/h2>\n

US-listed spot Bitcoin ETFs kicked off the traditionally bullish month of October with their second-highest week of inflows since their inception<\/a>, indicating renewed investor enthusiasm.<\/p>\n

Spot Bitcoin (BTC<\/a>) ETFs documented $3.24 billion in total net positive inflows<\/a> over the past week, almost equating to their peak of $3.38 billion in the week ending Nov. 22, 2024, according<\/a> to data provided by SoSoValue.<\/p>\n

This figure represents a significant rebound from the prior week\u2019s $902 million in outflows. Analysts credited the reversal to increasing anticipations of another US interest rate reduction, enhancing sentiment towards risk assets.<\/p>\n

Heightened anticipations for an additional US interest rate reduction prompted a \u201cshift in sentiment,\u201d drawing renewed investor interest towards Bitcoin ETFs, \u201cbringing four-week inflows to nearly $4 billion,\u201d Iliya Kalchev, dispatch analyst at digital asset platform Nexo, informed Cointelegraph. \u201cBased on current run-rates, Q4 flows could withdraw over 100,000 BTC from circulation \u2014 more than twice the new issuance.\u201d<\/p>\n

\u201cETF absorption is gaining momentum while long-term holder distribution mellowes, facilitating BTC to establish a more robust foundation,\u201d he added, near crucial technical support levels.<\/p>\n

US spot Bitcoin ETFs, all-time chart, weekly. Source: Sosovalue<\/em><\/figcaption><\/figure>\n

Steady ETF inflows may furnish notable tailwinds for Bitcoin in October, recognized as the second most favorable month for Bitcoin in terms of average historical yields, often referred to as \u201cUptober\u201d by crypto enthusiasts.<\/p>\n

This week\u2019s $3.2 billion momentarily elevated Bitcoin\u2019s price above $123,996 on Friday, marking over a six-week peak last recorded on Aug. 14 for the world\u2019s inaugural cryptocurrency, TradingView<\/a> data indicates.<\/p>\n

\u201cVery likely\u201d Bitcoin cycle will persist in some manner: Gemini exec<\/h2>\n

While Bitcoin\u2019s four-year cycle may not materialize in exactly the same way as it has historically, that does not imply the notion is entirely obsolete,<\/a> as per a crypto executive.<\/p>\n

\u201cI believe that with respect to the four-year cycle, the reality is it\u2019s quite probable that we\u2019ll witness some form of a cycle continuing,\u201d Saad Ahmed, head of the APAC region at crypto exchange Gemini, conveyed to Cointelegraph during a discussion at Token2049 in Singapore.<\/p>\n

\u201cIt fundamentally arises from individuals getting extremely enthusiastic and stretching themselves too far, leading to a crash, followed by a correction back towards equilibrium,\u201d Ahmed explained.<\/p>\n

However, Ahmed mentioned that increasing institutional participation<\/a> in the crypto sector could assist the market in managing some of the volatility. \u201cYou\u2019ll witness a reduction in some of the volatility, but a form of cycle will still persist, as it\u2019s ultimately driven by human emotions,\u201d Ahmed stated.<\/p>\n

Firms Reflect as UK Prepares to Lift Crypto ETN Ban<\/h2>\n

The UK\u2019s FCA is poised to soon reverse a prohibition<\/a> on crypto ETNs for retail investors enacted in 2019.<\/p>\n

According to an Aug. 1 announcement, the UK regulator will remove<\/a> the restriction on retail access to crypto ETNs beginning Wednesday, given they are traded on an \u201cFCA-approved, UK-based investment exchange.\u201d Unlike exchange-traded funds (ETFs), which remain prohibited in the UK for retail investors, ETNs represented debt instruments linked to crypto and not backed by any fundamental assets.<\/p>\n

With the impending repeal of the ban, firms operating in the UK have been deliberating on what the regulatory alteration could signify for retail investors. BlackRock, the globe\u2019s largest asset management firm, is reportedly exploring<\/a> ways to provide its iShares Bitcoin exchange-traded product in preparation for retail trading on or after Oct. 8.<\/p>\n

Bitwise CEO Hunter Horsley, whose company\u2019s European operations are based in London, stated<\/a> on X that he was \u201cthrilled to finally serve more investors in our home market in Europe.\u201d<\/p>\n

\u201cPreviously, the UK has been an outlier regarding ETNs,\u201d Ian Taylor, board adviser to the digital assets trade association CryptoUK, informed Cointelegraph. \u201cWe are optimistic that this initiative will enhance consumer protections, and we will persist in advocating for the removal of the prohibition on retail investors accessing highly regulated derivative products.\u201d<\/p>\n

Per an August notice from the FCA, any asset manager intending<\/a> to offer ETN trading to UK retail investors must have them listed on a \u201cRecognised Investment Exchange.\u201d This decision followed consultations with businesses, trade organizations, and consumer groups.<\/p>\n