According to Woofun AI, Dominick John, an analyst at Zeus Research, told The Block that institutional demand for crypto asset allocation has not weakened, a judgment based on the strong recovery momentum shown by ETF fund flows in September.

Looking at it from a historical perspective, U.S. spot Bitcoin ETFs recorded $2.65 billion in net inflows in September, which, although lower than August's $3.52 billion, far exceeded the average level of the past year and stood as the second-highest monthly net inflow since October 2025.

Spot Ethereum ETFs also performed impressively, with $832.43 million in net inflows in September. Although this was less than August's $1.85 billion, it was still the second-highest monthly net inflow since August 2025.

Data compiled by Woofun AI shows that entering October 1, Bitcoin ETFs continued to absorb $102.7 million, while Ethereum ETFs saw $55.4 million in net outflows.

Fund inflows directly boosted asset prices. As of 1 a.m. U.S. Eastern Time on Friday, BTC had risen 3.1% in 24 hours to $86,626, while ETH was up 1% to $2,735.

The Crypto Fear & Greed Index came in at 69, placing it in the greed zone, confirming strengthened market sentiment without reaching extreme levels.

John believes that given the fourth-quarter low has already appeared, continued ETF net inflows signal a potentially more optimistic trend in the coming quarter.

Market focus is now shifting to how macroeconomic variables may reshape interest rate expectations. Unemployment claims data scheduled for release on October 8 will reveal the real state of the U.S. labor market, while inflation data and the Federal Reserve's statements will become key variables.

Traders will closely monitor these indicators to verify the sustainability of institutional demand and anticipate the potential impact of interest rate trends on the crypto market.