Bitcoin ETFs Maintain Streak Amid Slower Inflows and Selective Demand
U.S. bitcoin ETFs continued their streak of positive inflows for the third consecutive week, attracting $241.08 million between Sept. 28 and Oct. 2. However, the pace of inflows slowed significantly, dropping by roughly 90% compared to the previous week's $2.39 billion. The week saw uneven flows, with notable outflows midweek before rebounding with strong inflows on Thursday and Friday. BlackRock's IBIT led the gains with $450.18 million in net inflows, while Fidelity's FBTC and Grayscale's GBTC experienced outflows.
Ether and Zcash ETFs faced a downturn, with ether ETFs recording about $138 million in net outflows and Zcash ETFs losing $93.56 million, ending a five-week inflow streak. In contrast, Solana, XRP, and HYPE ETFs managed modest inflows, showing selective institutional interest beyond bitcoin. The mixed results highlight a shift in capital allocation within the crypto market.
The debut of the NEAR ETF category marked a significant growth story, with Bitwise's NEAR fund attracting $58.35 million in its first week. This demand came amid softer U.S. employment data, which eased concerns about Federal Reserve tightening. The week also saw regulatory developments, including the approval of the first 3x leveraged bitcoin and ether ETFs, described by ETF Store President Nate Geraci as a 'wild turn of events.'
Overall, institutional demand for crypto assets remains strong, but the gap between winners and losers has widened. The key test for October will be whether the positive flow trend continues as new ETF categories enter the market.