Bitcoin ETF Demand Surges to Record Levels Amid Institutional Buying

Crypto analyst Scott Melker is pointing to broadening institutional demand behind Bitcoin's rebound. According to him, Bitcoin spot ETFs recorded their biggest week of 2026 with $2.06 billion in net inflows on September 23. This represents a significant increase from previous weeks and suggests that investors are becoming more confident in the cryptocurrency.

Melker believes that the recent demand for ETF products is not just driven by arbitrage but also by institutional and retail investors buying Bitcoin exposure with a longer-term horizon. He notes that large ETF inflow days can sometimes be concentrated in BlackRock's IBIT, where institutional investors use the fund alongside futures and options for carry trades.

However, Melker highlights that recent demand has been spread across multiple ETF products rather than dominated by BlackRock. This distinction makes the inflows more compelling as it potentially points to broader investor demand.