The Scoop: Spot ETF flows indicate 'Uptober' after all

This column was co-written by Frank Chaparro, director of special projects at The Block, and Laura Vidiella of MNNC Group. The views expressed in this column are their own and do not reflect the opinions of their employers.

As October wraps up, it's clear that "Uptober" held true after all — at least to an extent.

Despite a sluggish start, Bitcoin gained around 3% this month—not a headline-grabber, but the flows tell a different story. Asset managers like BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares saw net inflows of $901 million into global crypto funds last week alone, according to CoinShares.

With $3.36 billion poured into digital asset products in October, inflows now make up 12% of these funds' assets under management, marking the fourth-largest month on record. This has catapulted year-to-date inflows to $27 billion, nearly tripling the previous record of $10.5 billion set in 2021.

Not too shabby.

From my perspective, October also underscored an evolving trend. Since I began covering crypto, anticipation of Wall Street's adoption of crypto tech has dominated the narrative. With the launch of spot ETFs earlier this year, mainstream financial services cemented crypto as a legitimate asset class.

But there’s more to this than just technology. Wall Street is absorbing crypto’s culture and first principles — ideas that are quietly gaining traction. On the tech front, firms like BlackRock have introduced crypto-based products like tokenized treasuries. But the influence extends further, with crypto-native practices reshaping traditional finance.

Take today's news that Robinhood plans to launch derivatives on the U.S. presidential election. Some may argue it’s a late move, given Election Day is near, but it’s a clear example of a traditional firm (Robinhood) adopting a concept that a crypto-native player (Polymarket) popularized: prediction markets. And then there's 24/7 trading — a hallmark of crypto markets that's now finding a foothold in traditional finance. The New York Stock Exchange announced it will extend after-hours trading on its Arca electronic exchange, allowing trades for 22 hours a day, five days a week, pending regulatory approval.

Kevin Tyrrell, NYSE’s head of markets, framed this move as “underscoring the strength of U.S. capital markets and the global demand for U.S.-listed securities.” The message is clear: Even if traditional firms aren’t investing directly in crypto or creating onchain products, crypto’s ethos is seeping into the broader financial system.

Slowly, and then all at once.

The Block’s Frank Chaparro serves up the latest headlines, charts, trends, and views on crypto and DeFi from around The Block, Twitter, and The Scoop pod. Subscribe to The Scoop newsletter, which hits inboxes on Tuesday and Friday mornings.