Flows into bitcoin Exchange-traded funds (ETFs) are on track to set a new quarterly record, according to crypto asset manager Bitwise, which expects a rise in the fourth quarter as institutional access expands, macro tailwinds strengthen and prices rise.
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 on the books through September, a strong finish could push totals well beyond that mark, the company said in a report Tuesday.
A major catalyst came on October 1, when Morgan Stanley (MS) authorized its 16,000 advisors, overseeing $2 trillion in assets, to allocate them to cryptocurrencies, 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 these platforms typically move gradually, demand for advisors has been increasing for months, according to the report.
Macroeconomic forces are also adding momentum. The so-called “debasement trade,” which favors gold and bitcoin amid currency dilution, has become widespread after the U.S. money supply rose 44% since 2020, Hougan said.
And the bitcoin rally is amplifying everything. 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 the time of this publication.
Historically, price increases have attracted new ETF inflows, the report notes.
The fourth quarter is already off to a good start with $3.5 billion in net flows in the first four business days, bringing year-to-date totals to $25.9 billion. With two months to go, a record appears to be within reach, the report adds.
Read more: Citi Forecasts Bitcoin to Hit $181,000 in 2026 as ETF Flows Drive Crypto Higher
