Bitcoin ETF Demand Surges to 6-Month High as Futures Volumes Stay Low

According to Cointelegraph: Demand for spot Bitcoin ETFs has surged to a six-month high, marking a strong inflow of retail interest, but the subdued activity in BTC futures contracts may be constraining price movement. Recent data reveals that interest in spot Bitcoin ETFs has reached levels last seen at the April Bitcoin halving, while futures trading volumes continue to lag behind.Spot Bitcoin ETFs Draw Record Demand, Led by Retail InvestorsIn an October 25 post, CryptoQuant CEO Ki Young Ju highlighted that net flows into spot Bitcoin ETFs reached 65,962 BTC in the past 30 days. Retail demand is driving the surge, with non-institutional investors accounting for nearly 80% of total assets under management (AUM) in spot BTC ETFs as of October 10, according to Binance research. Since the ETFs' launch in January, cumulative inflows have hit $21.6 billion.Bitcoin Futures Trading Lacks ‘Significant Impulse’While spot ETFs see record inflows, Bitcoin futures trading volumes remain subdued. Crypto analytics firm Glassnode reported daily volumes across all BTC futures contracts have dropped to $35 billion — roughly half of what it was in March when Bitcoin hit its all-time high of $73,679. This lack of high-volume activity in futures suggests a current dominance of basis trade and arbitrage strategies, rather than speculative trades that often drive price volatility.Outlook on Market Activity and BTC PriceAs spot ETFs gain traction, the reduced futures volume may indicate lower short-term speculative interest, potentially stabilizing Bitcoin’s price movements. With retail demand increasing and cumulative ETF inflows growing, market participants are closely watching whether BTC price will break out of its current range in response to this influx of spot demand.