The place where Bitcoin ETFs (exchange traded funds) were located solid shape over the past two weeks, laying a foundation for the strong price action the major cryptocurrency has experienced recently. According to market data, crypto-linked investment products opened the week with a record daily inflow of more than $1.21 billion.
As of this writing, with data from Friday’s trading session yet to be added, US-based Bitcoin ETFs are currently on a nine-day streak of positive inflows. However, a focused look at the inflow trend shows that this data point does not tell the full story.
Does Bitcoin ETF Performance Depend on BlackRock’s IBIT?
In a recent post on the X platform, market analyst CryptoOnchain said declared that the latest data shows a big difference in the US-based Bitcoin exchange-traded fund market. According to the on-chain expert, capital flow has been largely positive thanks to BlackRock’s iShares Bitcoin Trust (IBIT).
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CryptoOnchain bucked the trend with the Bitcoin ETFs and labeled BlackRock’s IBIT as the “market shock absorber,” cleaning up the large liquidity on the sell side. The largest Bitcoin exchange-traded fund by net assets has not recorded an outflow day in October, with inflows of $4.21 billion so far.
On the other hand, the second largest BTC ETF Fidelity Wise Origin Bitcoin Fund (FBTC) has posted mixed performance in recent days, indicating a trend of portfolio rebalancing among their investors. Meanwhile, Grayscale’s GBTC has suffered subdued capital performance, interspersed with some daily net outflows.
CryptoOnchain also highlighted the Invesco Galaxy Bitcoin ETF (BTCO), which witnessed a large single-day outflow, causing significant market pressure. However, the net positive activity of BlackRock’s IBIT kept the BTC price afloat at the time.
CryptoOnchain noted that any slowdown in capital inflows for the iShares Bitcoin Trust could significantly weaken the bullish momentum of the BTC price. However, it is worth noting that the Bitcoin price is currently under heavy downward pressure due to the looming trade war between the United States and China.
At the time of writing, Bitcoin is valued at approximately $112,143, reflecting a decline of more than 7% in the past 24 hours.
Institutional demand for Bitcoin remains stable: Glassnode
Before the market decline caused by the tariff rumors and the eventual announcement of US President Donald Trump, the Bitcoin price had managed to stay above $120,000. In an earlier post from October 10 on X, Glassnode shared that Bitcoin ETFs may have helped keep the major cryptocurrency afloat.
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According to the on-chain company, exchange-traded funds have continued to record capital inflows despite BTC’s slight pullback from all-time highs. “This suggests that structural buying is still supporting the market, absorbing volatility and stabilizing price action,” Glassnode concluded.
Featured image from iStock, chart from TradingView