Bitcoin & Ethereum ETFs See $1B Inflows as Market Rebounds

US-listed spot Bitcoin and Ethereum exchange-traded funds (ETFs) experienced a remarkable turnaround on September 29, drawing more than $1 billion in net inflows after weeks of sustained outflows. This dramatic shift occurred as broader crypto market sentiment improved and digital asset prices staged a notable rebound, indicating that institutional investors are quickly responding to positive market signals. The combined $1.07 billion inflow represents one of the strongest single-day performances for crypto ETFs in recent months, suggesting that professional money managers are regaining confidence in the digital asset space.

The data from SoSoValue reveals a clear pattern of renewed institutional interest, with Bitcoin ETFs capturing $521.95 million in inflows and Ethereum ETFs demonstrating even stronger momentum with $546.96 million. This collective movement marks a significant departure from the previous trend of withdrawals that had characterized much of September. The timing of these inflows alongside price recoveries reinforces the view that institutional demand remains highly sensitive to market conditions and price movements, with professional investors acting swiftly when bullish signals emerge.

Fidelity emerged as the clear leader in the Bitcoin ETF space, with its FBTC product accounting for the bulk of activity by pulling in $298.70 million—more than half of the day’s total Bitcoin ETF inflows. Other major contributors included Ark 21Shares’ ARKB with $62.18 million, Grayscale’s BTC and Bitwise’s BITB each contributing approximately $47 million, and Invesco’s BTCO attracting $35.34 million in fresh capital. VanEck’s HODL added $30.66 million, while Grayscale’s GBTC brought in $26.91 million, with smaller but notable gains from Franklin Templeton’s EZBC at $16.51 million and Valkyrie’s BRRR at $4.03 million.

In a surprising development, BlackRock’s IBIT, typically the dominant Bitcoin ETF, was the only product to register losses with $46.64 million in outflows. This marked the fund’s third day of withdrawals in September, creating a notable divergence from the broader positive trend. Meanwhile, Ethereum ETFs saw even stronger performance, with Fidelity’s FETH leading at $202.18 million, followed by BlackRock’s ETHA at $154.20 million. Grayscale’s ETH and ETHE added $99.84 million and $22.77 million respectively, while Bitwise’s ETHW saw $36.52 million in inflows, demonstrating widespread institutional interest across multiple Ethereum ETF providers.

The substantial ETF inflows coincided with a sharp recovery in cryptocurrency prices, reinforcing the interconnected nature of institutional investment flows and market performance. According to Timothy Misir, head of research at BRN, Bitcoin climbed back to $114,000, erasing much of the prior week’s losses and forming a sharp V-shaped recovery pattern. This price action provided the necessary confidence for institutional investors to re-enter the market through regulated ETF vehicles, highlighting how price stability and upward momentum directly influence institutional participation.

Misir noted that Bitcoin investors consistently defended the $110,000 to $111,000 range, creating a sequence of higher lows that strengthened bullish conviction among market participants. He identified resistance lying between $115,000 and $116,300, suggesting that consolidation in that zone is likely before any push higher. The analyst emphasized that as long as Bitcoin trades above $109,000, momentum remains constructive for further institutional inflows. This technical analysis framework helps explain why the September 29 inflows occurred precisely as Bitcoin stabilized above key support levels, providing institutional investors with the confidence needed to commit significant capital.