Bitcoin ETFs Post Modest Outflows as Institutional Demand Remains Uncertain

The week of September 18 saw institutional investors maintain caution in crypto markets. Bitcoin ETFs recorded $92.1 million of net outflows on Friday, reversing the prior day's inflow and signaling continued trepidation. The decline followed a short-lived recovery on September 17, when Bitcoin ETFs attracted $159.5 million.

Despite this, the pace of withdrawals has begun to stabilize compared to earlier in the week, when funds shed $450.4 million on September 15 and $295.9 million on September 16. The data suggests that selling pressure persists but may be easing.

Mixed issuer flows drove Bitcoin outflows, with Fidelity's FBTC leading at $41.2 million, followed by ARK Invest and 21Shares' ARKB at $27.5 million. Grayscale's GBTC recorded $15.3 million in redemptions, while Bitwise's BITB saw $8.1 million leave the fund.

The absence of support from BlackRock's IBIT was significant, as it had driven the previous session's inflow with $183.7 million of purchases. Other issuers, including Invesco, Franklin Templeton, WisdomTree, VanEck and Morgan Stanley, recorded minimal or zero activity.