US spot Bitcoin exchange-traded funds (ETFs) have slowed dramatically, drawing roughly $232 million across 13 trading sessions after recording a massive $1.7 billion inflow burst across September 21 and September 22.
Outflows Hit Wall Street Funds
Data from SoSoValue reveals that US spot Bitcoin funds attracted $999 million on September 21 and $714.8 million on September 22, pushing cumulative net inflows to $56.87 billion. However, the positive momentum ground to a halt on September 30 when funds suffered a $148.7 million net outflow.
While brief buying returned on October 1 ($102.7 million) and October 2 ($189.8 million), selling pressure quickly resumed. Heavy redemptions on October 7 and October 8 generated $731.2 million in combined outflows. Between October 5 and October 9, net outflows reached $591 million, causing total net assets managed by the funds to contract from $110.77 billion to $105.84 billion. The retreat followed a broader weekly downturn where Bitcoin ETFs lost $681 million in net redemptions.
BlackRock Dominates Low-Volume Trading
Friday brought mild relief with a $21.13 million net inflow, ending a two-day outflow streak. BlackRock’s iShares Bitcoin Trust (IBIT) accounted for more than the entire net total by pulling in $22.38 million, whereas Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw $3.58 million leave the fund. Nine of the 12 spot funds posted zero flows.
- $1.7B Inflow Peak: Capital entries peaked on September 21 ($999M) and September 22 ($714.8M) before fading.
- BlackRock Concentration: IBIT holds $66.3 billion in net assets, representing 63% of the $105.84 billion total spot ETF market.
- Grayscale Outflows: Grayscale Bitcoin Trust (GBTC) cumulative outflows reached $27.94 billion.
- Dwindling Volume: Daily trading volume hit a 13-session low of $1.44 billion on Friday, down from $3.18 billion on October 8.
US spot ETFs currently hold 6.38% of Bitcoin’s total market value. With CoinGecko's Fear and Greed Index registering 39 in the fear zone, institutional participation remains subdued.
Why It Matters
While Bitcoin holds $83,000 after overnight gains, US spot ETF investors have not yet validated the market rally. Because these funds control over 6% of the circulating Bitcoin supply, sustained price advances require active institutional inflows to provide liquidity and structural support. A prolonged stall in ETF demand leaves the asset vulnerable to liquidity pullbacks or dependent entirely on non-US spot venues to maintain market momentum.
