Bitcoin ETF Demand Plummets 97% to $82.9M After Record Week
Bitcoin ETF inflows plummeted by 97% to $82.9 million in the week ended October 2, down from $2.39 billion the previous week. This significant drop in demand comes after institutional investors withdrew $148.7 million from Bitcoin ETFs on Wednesday, followed by $102.7 million of inflows on Thursday. BlackRock's IBIT was a notable exception, attracting approximately $292 million from Monday through Thursday, including $195.6 million on October 1 alone. In contrast, other Bitcoin ETFs, excluding IBIT, were net sellers by roughly $240.8 million over the same period.
The decline in demand is stark, with Bitcoin ETF flows falling from billions of dollars to tens of millions. The reversal is more complete in Ether, with spot Ether ETFs moving from a $689.8 million inflow to a $118 million net outflow. The week's macro backdrop became more supportive, with the 29,000 payroll print reducing expectations for a Federal Reserve rate hike in October. However, the institutional demand that produced $2.39 billion of buying only one week earlier did not continue at the same pace.