$1 Billion Pours into Bitcoin ETFs in Three Days: So Why Didn’t the Price Rise? Here Are the Details

Spot Bitcoin ETFs traded in the US experienced a significant inflow of funds, indicating a resurgence in institutional demand. The funds received over $1 billion in net investment over three trading days, with various data sources calculating the total to be between $1.07 billion and $1.08 billion.

Net inflow on Wednesday was reported to be approximately $524.8 million. Monday’s recorded inflow of $526.7 million came entirely from the IBIT fund managed by BlackRock. These recent movements erase the losses from early October, and the monthly net flow has turned positive by approximately $460 million.

However, the Bitcoin price did not rise to the same extent. After approaching $85,000 weekly, BTC retreated to around $81,500. This shows that ETF inflows do not always have an immediate and one-to-one impact on price.

Historical data shows that during the three strong Bitcoin rallies since January 2024, ETFs saw average daily inflows exceeding $200 million. During sharper periods of increase, the average reportedly reached approximately $235 million. In contrast, since July 1st, the daily average has remained around $86 million.

While the three-day total is quite large, what’s important is that the inflows aren’t limited to a few days but continue. Futures contracts, direct spot purchases, macroeconomic conditions, and investor profit-taking also affect the price.

Ethereum ETFs saw inflows of $14.9 million after a five-day outflow. However, ETH funds remain approximately $1.07 billion in deficit for the month of October.

*This is not investment advice.