Bitcoin ETFs See $524M Inflows as Market Confidence Returns

The renewed interest suggests a rebound in investor confidence after the crypto market crash, supported by easing macroeconomic uncertainty and the US Senate’s approval of a funding package to end the government shutdown. Institutional players and “smart money” traders have also begun increasing long positions, which suggests that there is optimism for Bitcoin’s recovery. Meanwhile, Bitwise’s proposed Chainlink ETF took a key step toward launch after being listed on the DTCC’s registry under the ticker CLNK. This proves that ETF progress is being made despite broader delays in ETF approvals caused by the government shutdown. With new SEC listing standards expected to streamline approvals, more altcoin ETFs could soon follow.

Bitcoin ETFs Show Strong Recovery

Bitcoin exchange-traded funds (ETFs) are showing renewed strength after weeks of sluggish performance, which could hint at a recovery in risk appetite among investors after the sharp crypto market crash in early October. According to data from Farside Investors, US spot Bitcoin ETFs recorded $524 million in cumulative net inflows on Tuesday, the highest single-day amount since Oct. 7. The surge in inflows was also the strongest investor confidence seen since the Oct. 10 crash that had briefly shook faith in crypto exposure.

Bitcoin ETF flows (Source: Farside Investors)

The rebound in ETFs coincides with the growing optimism across markets. Bitcoin is currently trading around $104,900, and has benefited from institutional flows and purchases from entities like Michael Saylor’s Strategy, both of which have been key drivers of demand this year. 

BTC’s price action over the past week (Source: CoinMarketCap)

The timing of these inflows also coincided with the US Senate’s approval of a funding package ending the government shutdown, which is now awaiting a House vote. The move added some stability to financial markets and may have encouraged institutional repositioning toward risk assets like Bitcoin.

On-chain analytics also show a similar sentiment shift. Data from Nansen reveals that “smart money” traders—those historically more profitable in volatile markets—added over $8.5 million worth of net long Bitcoin positions in the past 24 hours, which indicates that there is growing confidence in a price recovery. However, the same traders are still net short by about $202 million on decentralized exchange Hyperliquid.

Analysts describe the current correction phase as healthy, and suggest it’s actually helping to reset leverage and make room for renewed institutional participation. Bitget Wallet’s research analyst Lacie Zhang pointed out that cooling inflation data could further ease market tensions and trigger a liquidity-driven rebound for Bitcoin. Sustained ETF inflows also signal that the “de-risking phase” among investors might be nearing its end after weeks of outflows that at one point reached $700 million in a single day.

Meanwhile, other crypto ETFs saw mixed flows. Ethereum products experienced $107 million in outflows, while Solana ETFs continued their 11-day winning streak with $8 million in positive inflows.

Bitwise Chainlink ETF Nears Launch

Meanwhile, Bitwise’s proposed Chainlink ETF took a key step toward launch after appearing on the Depository Trust and Clearing Corporation’s (DTCC) registry this week. The listing, under the ticker CLNK, placed the fund in the DTCC’s “active” and “pre-launch” categories. Historically, this preceded final approval for several crypto ETFs. 

While the move does not guarantee authorization from the US Securities and Exchange Commission (SEC), it typically indicates that a product is approaching the final stages of review. The DTCC plays a critical role in financial markets by clearing, settling, and recording transactions to ensure they are processed efficiently and securely. 

Exchange Traded Funds – Active and Pre-Launch (Source: DTCC)

Bitwise has not yet filed a Form 8-A for its Chainlink ETF, which is a required step before a product can begin trading, but its earlier Form S-1 filing in August was the start of the registration process with the SEC. 

The ETF is designed to track the price of Chainlink (LINK), the native token that powers Chainlink’s decentralized oracle network, which provides real-time data to smart contracts. Grayscale is also working on a similar product, though it may face more regulatory scrutiny due to its plans to incorporate staking into its structure.

The timing of Bitwise’s progress comes amid broader delays in the ETF approval process caused by the US government shutdown. On the bright side, the Senate recently passed a funding bill that is expected to end the shutdown soon, and potentially allow the SEC to resume normal operations and move pending ETF applications forward.

Over the past few months, several asset managers filed for spot ETFs tracking other altcoins, including Dogecoin, Solana, Aptos, Avalanche, and Hedera. Analysts say the SEC’s new “generic listing standards,” which were introduced in mid-September, could accelerate approvals once the government reopens.