U.S. Spot Bitcoin ETFs Flip Back to Inflows as Month-End Rebalancing Looms
Hannah Lee
October 24, 2025
“Every dip in flows is met by allocators who missed the summer leg higher,” said one ETF market maker based in Chicago.
From Outflows to Inflows
After three sessions of redemptions totaling nearly $1.2 billion, U.S. spot bitcoin ETFs recorded net inflows on October 23, according to preliminary tallies from Farside Investors. The reversal mirrored improving macro sentiment and a bounce in BTC prices toward $111,000.
Analysts attribute the swing to asset allocators stepping back in after clearing risk committees earlier in the week. Many advisers remain committed to dollar-cost averaging into the funds despite short-term volatility.
Which Issuers Led
BlackRock’s iShares Bitcoin Trust (IBIT) absorbed the bulk of fresh capital, adding an estimated $242 million. Fidelity’s FBTC and Bitwise’s BITB posted smaller gains, while Grayscale’s GBTC remained in outflow but at a slower pace than earlier in the week. Smaller issuers like Franklin Templeton and VanEck reported steady creation activity, suggesting institutional interest beyond the top two funds.
ETF desks noted that authorized participants are managing hedges more cautiously, keeping a closer eye on CME futures basis to avoid the dislocations seen in early October.
Context After Heavy Redemptions
Earlier in the week, funds shed assets as macro jitters and liquidation waves hit crypto markets. The whipsaw has become a hallmark of ETF ownership, where rapid inflows and outflows mirror broader sentiment shifts. Even with the rebound, cumulative flows for October remain modestly negative, keeping issuers focused on investor education campaigns.
Advisors say clients are increasingly comfortable with short-term volatility, treating the ETFs as a long-term allocation rather than a trading vehicle. That patience could temper future drawdowns, though much depends on macro stability.
Market Impact and Positioning
The return of inflows helped stabilize bitcoin’s spot premium relative to futures, easing pressure on market makers who were forced to sell futures against ETF creations earlier in the week. Funding rates on perpetual swaps normalized, and implied volatility cooled slightly as traders faded the risk-off impulse.
OTC desks reported renewed demand from family offices and RIAs looking to rebalance portfolios toward bitcoin exposure before month-end statements are finalized. That suggests flows could remain positive if macro conditions stay supportive.
What’s Next Into Month-End
Strategists expect ETF volumes to stay elevated through the end of October as institutions execute rebalancing trades. They will be watching for sustained inflows across multiple issuers, a sign that adoption is broadening rather than concentrated in a single fund.
The key swing factor remains macro data; another risk-off shock could reverse the trend. For now, ETF flows are reinforcing bitcoin’s dominance narrative and keeping bulls engaged.