- BlackRock’s IBIT ETF sees <0.6k BTC weekly inflows over three weeks, down from >10k BTC peaks, per Glassnode.
- September marked the first net outflow of $93M for US spot BTC ETFs, highlighting TradFi demand weakness.
- Total IBIT holdings exceed 400k BTC, but slowing flows signal institutional caution amid macro risks.
In a stark reminder that even the mightiest bulls can catch their breath, BlackRock’s iShares Bitcoin Trust (IBIT) is experiencing a noticeable chill in investor enthusiasm. Over the past three weeks, the flagship spot Bitcoin ETF has recorded net inflows of less than 0.6k BTC per week—a sharp departure from the blistering pace of over 10k BTC weekly during peak institutional fervor earlier this cycle. This slowdown, as highlighted in fresh Glassnode data, underscores a broader hesitancy among big-money players, potentially signaling the maturation of Bitcoin’s ETF narrative from explosive growth to steady consolidation.
Glassnode’s latest on-chain metrics paint a concerning picture for ETF optimists. The firm’s US Spot ETF Flows dashboard reveals that while IBIT still leads the pack in cumulative assets under management—surpassing $30 billion since its January launch—the velocity of fresh capital has evaporated. September’s net outflow of $93 million, the first since inception, was a red flag; October’s tepid inflows only amplify the unease. Trading desks are whispering about renewed weakness, with ETF arbitrageurs citing softer demand from traditional finance (TradFi) institutions as a key culprit. “This isn’t a collapse,” notes Glassnode’s analyst report, “but a recalibration. Institutions are rotating into risk-off assets amid macroeconomic headwinds like persistent inflation and geopolitical jitters.
“Diving deeper, the data shows a divergence: While retail adoption via ETFs remains resilient—bolstered by platforms like Robinhood integrating seamless access—institutional flows are buckling under profit-taking. BlackRock’s ETF has absorbed over 400k BTC in total, equivalent to roughly 2% of Bitcoin’s circulating supply. Yet, with weekly nets dipping below 0.1% of that haul, questions swirl about sustainability. Is this a healthy pause before the next leg up, or the first crack in Bitcoin’s $1.2 trillion armor?
Contextually, this comes as Bitcoin hovers around $68,000, down 5% from its all-time high, pressured by regulatory scrutiny on crypto custody and the impending US election’s policy wildcards. ETF approvals were hailed as a gateway drug for Wall Street into crypto, but today’s flows suggest the honeymoon is over. BlackRock, ever the steady hand, has doubled down on education, with CEO Larry Fink reiterating Bitcoin’s “digital gold” thesis in recent earnings calls. Still, competitors like Fidelity’s FBTC and Grayscale’s GBTC are mirroring the trend, with aggregate spot ETF inflows totaling a mere $200 million last week—peanuts compared to March’s $2 billion bonanza.
For Bitcoin bulls, this dip in ETF enthusiasm could be a buy signal, akin to 2021’s mid-cycle lulls that preceded monster rallies. Bears, however, point to on-chain metrics like declining exchange reserves and rising HODL ratios as evidence of distribution. As we eye Q4, watch for Federal Reserve pivot signals; a rate cut could reignite the ETF fire. Until then, BlackRock’s slowdown serves as a humbling check: Crypto’s institutional embrace is real, but it’s no surefire rocket to the moon.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
