US spot Bitcoin exchange-traded funds experienced notable volatility between September 28 and October 2, as shifting institutional interest resulted in rapid changes in fund flows and Bitcoin price movements at the start of the fourth quarter.
Significant ETF inflows and outflows mark the week
Spot Bitcoin ETFs began the week on a positive note, registering $31 million in net inflows on September 28, followed by an additional $66.2 million the next day. This trend reversed on September 30, with net outflows totaling $148.7 million. The majority of these withdrawals originated from Fidelity’s FBTC, which saw $125.6 million leave the fund. BlackRock’s iShares Bitcoin Trust (IBIT) experienced $9.5 million in outflows, and Bitwise’s BITB reported outflows of $13.6 million.
The ETF landscape shifted again on October 1, driven by a $195.6 million inflow into BlackRock’s IBIT. This strong demand countered significant withdrawals from other products, including $60.7 million from FBTC and $31.4 million from Grayscale’s GBTC.
These substantial flows reflect ongoing competition among major asset managers, including Fidelity, BlackRock, Grayscale, and Bitwise, as they vie for dominance in the emerging US spot Bitcoin ETF market.
| ETF | Sept. 30 Outflow | Oct. 1 Inflow/Outflow |
|---|---|---|
| Fidelity (FBTC) | $125.6 million | -$60.7 million |
| BlackRock (IBIT) | $9.5 million | +$195.6 million |
| Bitwise (BITB) | $13.6 million | Not specified |
| Grayscale (GBTC) | Not specified | -$31.4 million |
Over the volatile period, spot Bitcoin ETFs recorded both significant outflows—led by $125.6 million in FBTC withdrawals—and rapid inflows, such as the $195.6 million added to BlackRock’s IBIT, underscoring the changing landscape of institutional demand in Bitcoin-linked products.
Bitcoin price action reacts to ETF flows and Fed expectations
The fluctuations in ETF demand closely mirrored movements in the price of Bitcoin. The cryptocurrency traded near $84,500 at the start of September 28, briefly declining to $82,600 before closing near $83,500 the same day. During the days of ETF outflows, Bitcoin hovered around $83,500 through month-end.
A renewed rally emerged at the beginning of October as inflows returned. Bitcoin surged past $87,000 temporarily on October 2, a move coinciding with renewed investor optimism that the Federal Reserve might maintain a measured approach to interest rate changes. Despite losing a portion of these gains by the close of Friday’s session, Bitcoin remained resilient over the weekend.
Prices held above $84,000 on Saturday and climbed further on Sunday, reaching an intraday peak near $86,770 before ending the day at approximately $86,480. This movement left Bitcoin up about 2.7% compared to its open on September 28, weathering the sharp ETF inflow and outflow swings during the week.
Institutional support, as reflected in the ETF flows, continues to play a key role in shaping price trends and market expectations for spot Bitcoin and related investment products.
