Crypto
Quarter-End Rebalancing Drives Crypto ETF Outflows
On September 30, investors withdrew $148.7 million from U.S. spot Bitcoin funds, marking an abrupt end to a nine-day trend of inflows into these funds.
The Fidelity Wise Origin Bitcoin Fund alone accounted for about 84% of the outflows, with $125.6 million withdrawn on that day.
Despite this, total assets for Bitcoin ETFs still rose to around $108 billion due to market prices increasing, not cash inflows and outflows.
This pattern is consistent with quarter-end rebalancing by institutional investors who adjust their holdings to maintain target allocations.
On the first trading day of the new quarter, October 1, Bitcoin funds welcomed back $102.7 million, primarily driven by $196 million flowing into BlackRock's iShares Bitcoin Trust.