Demand for Bitcoin ETFs Fades After $1.7 Billion Surge

US spot bitcoin ETFs have attracted roughly $232 million over the past 13 trading sessions. Inflows totaled $1.7 billion on September 21 and 22 but have since dried up.

Bitcoin climbed back above $83,000 during hours when US-listed ETFs were closed, meaning ETF investors have yet to validate the recovery. Monday's flow data will show if they join the move.

What Happened to Bitcoin ETF Inflows After September 22?

Data tracker SoSoValue indicates the funds pulled in $999 million on September 21 and $714.8 million the following day. Cumulative net inflows reached $56.87 billion by the end of that second day.

However, a streak of consecutive inflows ended on September 30 with a $148.7 million outflow, and ETF demand has weakened since.

A brief respite saw $102.7 million enter on October 1 and $189.8 million on October 2.

Then the two biggest outflows among the past 13 sessions occurred on October 7 and 8, totaling $731.2 million.

Total net assets dropped from $110.77 billion on October 5 to $105.84 billion on October 9. Net outflows over that period were $591 million, so lower prices likely drove most of the decline.

Can a Single Fund Lead the Rebound?

Friday netted $21.13 million in inflows, ending a two-day outflow run. BlackRock's iShares Bitcoin Trust (IBIT) took in $22.38 million, more than the day's overall net figure.

By contrast, Fidelity's Wise Origin Bitcoin Fund (FBTC) saw $3.58 million withdrawn. Nine of the twelve funds recorded zero flows.

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

Friday's total value traded of $1.44 billion was the lowest of the 13 sessions. October 8 marked the highest with $3.18 billion.

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

US spot bitcoin ETFs own 6.38% of Bitcoin's market value, per SoSoValue, making their flows a barometer of institutional demand. A rally without them would need other buyers. Glassnode data earlier this month linked a pullback to weak trading volume.