Bitcoin ETF Inflows Stall After $1.7 Billion Burst: Will Demand Return?

Source Beincrypto

US spot Bitcoin (BTC) exchange-traded funds (ETFs) have added only about $232 million over 13 sessions. Bitcoin ETF inflows totaled $1.7 billion across September 21 and 22, then went quiet.

Bitcoin’s price recovered to above $83,000 overnight while US-listed funds were not trading, so ETF buyers have not confirmed the move. Monday’s flow data will show whether they follow.

What Happened to Bitcoin ETF Inflows After September 22?

Data tracker SoSoValue shows the funds drew $999 million on September 21 and $714.8 million on September 22. Cumulative inflows hit $56.87 billion by the end of that second day.

However, an inflow streak ended on September 30 with a $148.7 million outflow, and ETF demand has faded since.

September 21 saw the largest inflows since Bitcoin's latest rally started.September 21 saw the largest inflows since Bitcoin’s latest rally started. Source: SoSoValue

Brief relief followed, with $102.7 million entering on October 1 and $189.8 million on October 2.

Then the two largest outflows of the past 13 sessions hit on October 7 and 8, totaling $731.2 million.

Total net assets fell from $110.77 billion on October 5 to $105.84 billion on October 9. Net outflows over that span totaled $591 million, so lower prices likely drove most of the drop.

Can One Fund Carry the Recovery?

Friday’s $21.13 million inflow ended a two-day outflow run. BlackRock’s iShares Bitcoin Trust (IBIT) took in $22.38 million, more than the day’s net total.

In contrast, Fidelity’s Wise Origin Bitcoin Fund (FBTC) lost $3.58 million. Nine of the 12 funds posted zero flows.

IBIT alone holds $66.3 billion of the $105.84 billion in total net assets, about 63%. Grayscale Bitcoin Trust (GBTC), meanwhile, has recorded $27.94 billion in cumulative net outflows.

Friday’s $1.44 billion in total value traded was the lowest of the 13 sessions. October 8 had marked the highest, at $3.18 billion.

A Fear and Greed sentiment reading of 39 sits in the fear zone, according to CoinGecko.

US spot Bitcoin ETFs hold 6.38% of Bitcoin’s market value, according to SoSoValue, so their flows gauge institutional demand. A rally without them would need other buyers. Earlier this month, Glassnode data tied a pullback to weak trading volume.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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