U.S. Bitcoin ETF Inflows Decline

U.S. spot Bitcoin exchange-traded funds (ETFs) saw a downturn last week, ending a four-week streak of inflows as the third quarter concludes.

Last week recorded $902.50 million in net flows, a level that’s the lowest in over 30 days, primarily due to Friday’s outflow of $418.25 million, according to SoSoValue data.

Fidelity’s FBTC product experienced the largest outflow on Friday, amounting to $300.41 million, followed by $37.25 million from BlackRock’s IBIT.

This outflow trend is predominantly linked to profit-taking and portfolio rebalancing as quarter-end approaches, as noted by Shawn Young, chief analyst at MEXC Research, in an interview with Decrypt.

Despite the recent outflows, Young indicates optimism for continued growth, highlighting that the products are being actively traded in mainstream portfolio management.

He stated, “The long-term trajectory of institutional adoption remains intact.”

Bitcoin has struggled to maintain the upward momentum seen in mid-August when it reached a record high just above $124,000. However, Bitcoin’s September returns stay positive at around 3.2%, bouncing back from a low of $108,600 last week. As of the latest data from CoinGecko, Bitcoin is up slightly over 2% to $111,800.

Young pointed out that the market’s resilience in absorbing pressure reflects consolidation rather than weakness, noting, “The market is essentially waiting for a clearer macro signal, and this can be from the Fed, U.S. government policy, or liquidity trends before making its next decisive move.”

With historical performance suggesting Bitcoin typically sees returns exceeding 50% in the fourth quarter during bull runs, the sentiment remains upbeat.

Young anticipates “heightened volatility” and the potential for “trend-setting moves” in the upcoming months, which could present investors with renewed opportunities to enhance their existing portfolios.