US Spot ETFs Kickstart ‘Uptober’

Today in crypto, US-listed spot Bitcoin exchange-traded funds (ETFs) kicked off October with billions in inflows, a crypto executive predicted the Bitcoin price cycle will endure, and the United Kingdom’s Financial Conduct Authority (FCA) prepares to reverse its ban on crypto exchange-traded notes (ETNs) for retail investors.

Bitcoin ETFs kickstart “Uptober” with $3.2 billion in second-best week on record

US-listed spot Bitcoin ETFs began the historically bullish month of October with their second-best week of inflows since launch, signaling renewed investor optimism.

Spot Bitcoin (BTC) ETFs recorded $3.24 billion worth of cumulative net positive inflows over the past week, nearly matching their record of $3.38 billion in the week ending Nov. 22, 2024, according to data from SoSoValue.

The figure marks a sharp rebound from the previous week’s $902 million in outflows. Analysts attributed the turnaround to growing expectations of another US interest rate cut, which has improved sentiment toward risk assets.

Growing expectations of another US interest rate cut triggered a “shift in sentiment,” attracting renewed investor demand for Bitcoin ETFs, “bringing four-week inflows to nearly $4 billion,” Iliya Kalchev, dispatch analyst at digital asset platform Nexo, told Cointelegraph. “At current run-rates, Q4 flows could retire over 100,000 BTC from circulation — more than double new issuance.“

“ETF absorption is accelerating while long-term holder distribution eases, helping BTC build a stronger base,” near key technical support levels, he added.

Continued ETF inflows may provide significant tailwinds for Bitcoin in October, which is the second-best month for Bitcoin in terms of average historical returns, often referred to as “Uptober” by crypto investors.

This week’s $3.2 billion briefly pushed Bitcoin’s price above $123,996 on Friday, marking an over six-week high last seen on Aug. 14 for the world’s first cryptocurrency, TradingView data shows.

“Very likely” Bitcoin cycle will continue in some form: Gemini exec

While Bitcoin’s four-year cycle may not play out exactly as it has in the past, that doesn’t mean the concept is entirely dead, according to a crypto executive.

“I think when it comes to the four-year cycle, the reality is that it’s very likely that we’ll continue to see some form of a cycle,” crypto exchange Gemini’s head of APAC region, Saad Ahmed, told Cointelegraph during a sit-down interview at Token2049 in Singapore.

“It ultimately stems from people get really excited and overextend themselves, and then you kind of see a crash, and then it kind of corrects to an equilibrium,” Ahmed said.

However, Ahmed said growing institutional involvement in the crypto industry could help the market absorb some of the volatility. “You’ll see some of the volatility, kind of flag off, but you’ll still see some sort of a cycle, because ultimately, it’s driven by human emotion,” Ahmed said.

Companies weigh in as UK prepares to reverse crypto ETN ban

The UK’s FCA is set to soon reverse a ban on crypto ETNs for retail investors enacted in 2019.

According to an Aug. 1 notice, the UK watchdog will lift a ban on retail access to crypto ETNs starting on Wednesday, provided they are traded on an “FCA-approved, UK-based investment exchange.” Unlike exchange-traded funds (ETFs), which are still banned in the UK for retail investors, ETNs represented debt securities tied to crypto and not backed by any underlying assets.

With the lifting of the ban looming, companies with operations in the UK have been weighing in on what the regulatory change could mean for retail investors. BlackRock, the world’s largest asset management company, is reportedly looking into ways to offer its iShares Bitcoin exchange-traded product to prepare for retail trading on or after Oct. 8.

Bitwise CEO Hunter Horsley, whose company’s European operations are headquartered in London, said on X that he was “excited to be able to serve more investors in our home market in Europe at long last.”

“Until now, the UK has been an outlier on ETNs,” Ian Taylor, board adviser to the digital assets trade association CryptoUK, told Cointelegraph. “We hope this move will improve consumer protections and we will continue to make the case for lifting the ban on retail investors from accessing highly-regulated derivative products.”

According to an August notice from the FCA, any asset manager planning to offer trading of ETNs to UK retail investors had to have them listed on a “Recognised Investment Exchange.” The decision followed consultations with companies, trade associations, and consumer groups.