The cryptocurrency world is abuzz with renewed energy this week, marked by historic ETF inflows, record-breaking Bitcoin highs, and bold moves by India’s central bank toward digital-asset infrastructure. As the crypto market charts fresh territory, investors and regulators alike are watching closely.
Record ETF Inflows Highlight Institutional Appetite
Global crypto exchange-traded funds (ETFs) drew in $5.95 billion in new capital for the week ending October 4, 2025, according to CoinShares data. (Reuters) This surge coincides with Bitcoin pushing to new all-time highs, crossing $125,000. (Reuters)
Of those inflows, Bitcoin alone secured $3.55 billion, while Ethereum captured $1.48 billion. (Reuters) Other assets like Solana and XRP also benefitted, with $706.5 million and $219.4 million respectively. (Reuters) Analysts attribute this institutional wave to increased confidence in crypto as a portfolio diversifier amid macro uncertainty and regulatory clarifications. (Reuters)
Bitcoin & Altcoins: Record Highs, Sharp Pullbacks
Bitcoin recently soared to a new peak of around $125,264, before pulling back modestly to $122,000. (MarketWatch) Though the dip erased a small portion of gains, BTC remains sharply higher year-to-date. (Barron’s)
Other major names also showed strength: BNB pushed past $1,200, reaching fresh all-time highs. (The Economic Times) Ethereum climbed above $4,700, supported by strong fundamentals and rising DeFi activity. (The Economic Times)
Still, some warning signs have emerged. Analysts caution that BTC’s recent pullback points to potential short-term overheating in the rally. (CoinDesk) Volatility remains an ever-present risk, especially in the face of derivatives-driven momentum. (AInvest)
India Takes Bold Steps in Digital Asset Infrastructure
While global markets buzz, India is quietly laying the groundwork for a new era in digital finance. On October 8, 2025, the Reserve Bank of India (RBI) will launch a pilot program on deposit tokenisation within its central bank digital currency (CBDC) architecture. (The Economic Times)
Deposit tokenisation aims to turn traditional bank deposits into digital tokens on a blockchain, potentially enhancing transaction speed, security, and programmability. (Reuters) The pilot will operate in the wholesale segment and involve select banks. (Reuters)
At the same time, India’s regulators are proceeding cautiously. RBI Deputy Governor T Rabi Shankar reiterated that a full nationwide CBDC rollout remains distant; the central bank still wants to evaluate performance and risks before moving ahead. (The Economic Times)
Meanwhile, Commerce Minister Piyush Goyal emphasized that the Indian government “does not encourage crypto that is not backed by a sovereign guarantee,” signaling stricter oversight and taxation for private tokens. (Angel One) India already taxes crypto gains at 30 percent, plus 1 percent TDS on transactions above ₹10,000. (Coinpedia Fintech News)
Despite regulatory caution, India continues to lead in crypto adoption. It now ranks first in the 2025 Global Crypto Adoption Index, with over 100 million users, even as policy direction waits in flux. (crypto.news)
New Index Brings Crypto & Stocks Under One Roof
In a sign of growing convergence between traditional finance and digital assets, S&P Dow Jones Indices unveiled the S&P Digital Markets 50. (Barron’s) This new index combines 15 top cryptocurrencies and 35 crypto-related stocks, blending exposure across sectors. (Barron’s)
Each component is capped at a 5 percent weighting to maintain diversification. (Barron’s) Most notably, S&P plans to tokenize the index itself, listing a version on Dinari’s dShares platform by the end of 2025. (Barron’s)
This integration of equity and crypto into a hybrid index signals that institutional financial models increasingly view cryptocurrencies as mature asset classes—not speculative outliers.
Risks & Reminders: Scams and Corrections
High returns attract not just investors, but fraudsters. In Rajkot, India, a medical representative lost ₹31.5 lakh in a crypto scam. He was coaxed via Facebook into investing in USDT, only to be trapped by withdrawal “verification” demands. (The Times of India)
This tale is not unique. Earlier reports revealed a Haryana businessman lost ₹1 crore in an alleged crypto con. (The Times of India) Such episodes underscore the persistent dangers of unverified platforms and social engineering tactics.
On the market front, the October 8 dip in Bitcoin and Ethereum has sparked debate over whether this is a smoking gun for correction or a buying opportunity. (AInvest) Support levels near $115,000 for BTC and $3,700 for ETH are watched closely by technical traders. (AInvest)
Outlook for Crypto: Momentum, Regulation & Innovation
The momentum behind institutional inflows and rising asset prices suggests crypto is increasingly viewed as mainstream. The launch of tokenised indices and experiments in deposit tokenisation reinforce that trend.
Yet, regulation remains a pivotal pivot point. India’s deliberate, step-by-step posture hints at both ambition and caution. For market participants, staying informed about regulatory moves and employing risk management will remain critical.
As the digital asset space accelerates, the winners will be those who adapt with vigilance, clarity, and patience.