Quarter-End Rebalancing Halts Bitcoin ETFs Inflow Streak with $902M Outflow
Key Takeaways:
- U.S. Bitcoin ETFs saw $902.5 million in outflows, ending a four-week inflow streak.
- Ether ETFs recorded their largest weekly outflow, a $795.6 million institutional pullback.
- Despite outflows, ETH's price rebounded, and the long-term Bitcoin outlook stays bullish.
U.S. spot Bitcoin ETFs concluded a four-week inflow streak with net outflows of $902.5 million, a shift largely driven by a single-day redemption of $418.3 million as the quarter ended.
This reversal tempered the consistent institutional demand that had characterized most of September, signaling a pause rather than a collapse in momentum.
Outflows Driven by Profit-Taking and Portfolio Rebalancing
According to SoSoValue data, Fidelity’s FBTC saw the largest outflow on Friday, losing $300.41 million. BlackRock’s IBIT followed closely with $37.25 million in redemptions.
Market analysts attribute this shift to routine quarter-end portfolio rebalancing and profit-taking by large funds, a common practice among large funds—and not to panic.
This is not the first significant pullback for Bitcoin ETFs. On February 25, they recorded $937 million in net outflows amid inflation fears and tariff concerns.
On August 19, they lost $523.3 million in a single day as global markets reacted to uncertainty over interest rates and growth forecasts.
The current decline appears more tactical and not fearful, as investors lock in gains after a strong summer performance.
Bitcoin, however, hasn’t regained the levels seen in mid-August when it briefly crossed $124,000. The market is still working through that surge and the pullback that followed.
The price fell to $108,600 last week before stabilizing. Still, Data from CoinMarketCap shows September returns remain positive at 3.16%.
At press time, BTC trades at $111,769, up 2.18% in the past 24 hours.
Industry leaders remain upbeat. Jack Mallers, co-founder and CEO of Twenty One Capital, said Bitcoin could rise 200-fold in the coming years.
He pointed to the global store-of-value market, estimated at $400-$500 trillion, and argued that Bitcoin’s $2 trillion market cap leaves vast room for growth if it captures even a small share.
Ether ETFs See Heaviest Losses Since Launch
The wave of redemptions extended to Ether ETFs, which recorded their largest weekly outflows since launch. They shed $795.6 million for the week ending September 26, according to SoSoValue data.
That surpassed the previous record of $787.7 million earlier this month, with weekly trading volumes climbing above $10 billion, reflecting how active traders were during the sell-off.
Withdrawals were concentrated in major funds. BlackRock’s ETHA lost more than $200 million, though it still retains $15.2 billion in assets. Fidelity’s FETH faced $362 million in redemptions, the largest single withdrawal of the week.
Ether briefly dipped below $4,000 on Thursday and Friday before recovering to $4,098 at press time.
The rebound showed resilience but also underscored the impact that large institutional redemptions can have on price stability.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
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