Bitcoin ETF Inflows Hit Record, IBIT Dominates Market

The US Bitcoin ETF market is experiencing remarkable capital inflows, with investment products opening the week with a daily inflow record of over $1.21 billion. As of the latest data, US-based Bitcoin ETFs are currently on a nine-day streak of positive inflows, creating a foundation for the strong price action experienced by Bitcoin in recent weeks. However, this headline number obscures significant divergence in individual ETF performances that reveals a more complex market dynamic.

According to market analyst CryptoOnchain, the capital flow has been mostly positive because of BlackRock’s iShares Bitcoin Trust (IBIT), which has functioned as the market’s ‘shock absorber’ by mopping up 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 this month. This dominant performance stands in stark contrast to other major players in the Bitcoin ETF space.

While BlackRock’s IBIT continues its unbroken streak of inflows, other major Bitcoin ETFs show markedly different patterns. Fidelity Wise Origin Bitcoin Fund (FBTC), the second-largest BTC ETF, has had a mixed performance in recent days, signaling a trend of portfolio rebalancing among their investors. Grayscale’s GBTC has struggled with muted capital performances, interspersed with some daily net outflows, indicating continued challenges for the converted fund.

The dependency on IBIT became particularly evident when Invesco Galaxy Bitcoin ETF (BTCO) witnessed a major one-day outflow that precipitated significant market pressure. CryptoOnchain noted that the net positive activity of BlackRock’s IBIT kept the BTC price afloat during this period. This dynamic raises important questions about market stability, as any slowdown in capital inflows for the iShares Bitcoin Trust could significantly weaken the bullish momentum of the BTC price.

Despite the strong ETF inflows, Bitcoin price is currently under intense downward pressure due to the looming trade war between the United States and China. As of the latest data, Bitcoin is valued at around $112,143, reflecting an over 7% downturn in the past 24 hours. This decline follows market reactions to US President Donald Trump’s tariff rumors and eventual announcement, which triggered the current market downturn.

Before this recent pressure, Bitcoin price had managed to stay above $120,000, supported in part by institutional demand through ETFs. According to on-chain analytics firm Glassnode, 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 in an October 10 post on X.

The current market environment presents a critical test for Bitcoin’s institutional adoption story. While ETF inflows demonstrate continued institutional interest, the concentration of that interest in a single fund—BlackRock’s IBIT—creates potential vulnerability. As trade tensions between the United States and China evolve, market participants will be watching closely to see if the structural buying through ETFs can maintain its stabilizing influence on Bitcoin price action amid increasing macroeconomic headwinds.