Spot Bitcoin ETFs Show Major Divergence In Inflows — What’s Driving The Split?
Wall Street's bitcoin love affair hits a fork in the road as ETF flows tell conflicting stories.
The Great Divide
While some spot bitcoin ETFs are swimming in fresh capital, others are bleeding assets faster than a hacked exchange. The divergence isn't just noticeable—it's dramatic enough to make traditional finance veterans scratch their heads. One fund pulls in nine figures while its competitor watches millions walk out the door.
Fee Wars or Performance Play?
Lower expense ratios are grabbing attention, but savvy investors are looking beyond the basis points. Trading volume, liquidity, and track record are creating clear winners and losers in this high-stakes game. The spread between top and bottom performers would make even the most cynical hedge fund manager raise an eyebrow.
Institutional Money Plays Favorites
Big money isn't spreading bets evenly across the ETF landscape. Pension funds and asset managers are piling into established players while giving newer entrants the cold shoulder. The concentration suggests institutions care more about market depth than marketing hype.
As the ETF market matures faster than a crypto bull cycle, one thing's clear: in the race for bitcoin exposure, not all vehicles are created equal—and Wall Street's finally learning what crypto natives knew all along.
Do Bitcoin ETFs’ Performance Depend On BlackRock’s IBIT?
In a recent post on the X platform, market analyst CryptoOnchain stated that the latest data shows a major divergence in the US-based bitcoin exchange-traded fund market. According to the on-chain pundit, the capital flow has been mostly positive because of BlackRock’s iShares Bitcoin Trust (IBIT).
Breaking down the trend with the Bitcoin ETFs, CryptoOnchain labeled BlackRock’s IBIT as the “market’s shock absorber,” mopping up the heavy sell-side liquidity. The largest Bitcoin exchange-traded fund by net assets has not posted an outflow day in October, with a $4.21 billion inflow so far.
On the other hand, the second-largest BTC ETF Fidelity Wise Origin Bitcoin Fund (FBTC) has had a mixed performance in recent days, signaling a trend of portfolio rebalancing amongst their investors. Meanwhile, Grayscale’s GBTC has struggled with muted capital performances, interspersed with some daily net outflows.
CryptoOnchain also highlighted the Invesco Galaxy Bitcoin ETF (BTCO), which witnessed a major one-day outflow, which precipitated 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 mentioning that the Bitcoin price is currently under intense downward pressure due to the looming trade war between the United States and China.
As of this writing, Bitcoin is valued at around $112,143, reflecting an over 7% downturn in the past 24 hours.
Bitcoin Institutional Demand Remains Steady: Glassnode
Before the market downturn triggered by US President Donald Trump’s tariff rumors and eventual announcement, the bitcoin price had managed to stay above $120,000. In an earlier October 10 post on X, Glassnode shared that the Bitcoin ETFs might have helped keep the premier cryptocurrency afloat.
According to the on-chain firm, the exchange-traded funds have continued to record capital inflows despite BTC’s mild pullback from its all-time high. “This suggests structural buying is still underpinning the market, helping to absorb volatility and stabilize price action,” Glassnode concluded.
