While institutional giant BlackRock is breaking records with its IBIT fund in terms of new capital inflows, the rest of the spot bitcoin ETF market is balancing on the edge, and ethereum-focused funds are bleeding out. Following an euphoric start to the week, a sharp sobering came in the form of massive outflows, clearly demonstrating how quickly investor sentiment on financial markets can turn.
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IBIT Crushes the Competition, While Sell-Offs Drag Down the Rest of the Market
The iShares Bitcoin Trust (IBIT) fund, managed by BlackRock, posted a net inflow of $565.7 million between October 19 and 23, with Monday’s addition of over $665 million contributing the most. However, this spectacular result masks the reality of the broader sector: other issuers as a group were losing ground, and the weekly net inflow across all US spot bitcoin ETFs ended at a mere $301 million. Toward the end of the week, investors began taking profits en masse, triggering the largest single-day outflow since June.
The divergence is even more pronounced when compared to the second-largest cryptocurrency. US ethereum ETFs recorded a net outflow exceeding $220 million over the same five trading days, with the ETHA fund — also from BlackRock — representing the biggest burden. Institutions are currently channeling new capital primarily into bitcoin, which is taking over from earlier corporate treasury purchases in terms of demand volume, while ethereum remains sidelined.
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Macroeconomic Risks and the Key Support at $80,000
Optimism over institutional buying is being tempered by threats from the traditional financial world. US producer prices (PPI) for September rose 1.3% month-on-month, which significantly strengthened expectations that the Fed will raise interest rates at its December meeting. The prospect of tighter monetary conditions and higher yields on conservative assets naturally dampens investors’ appetite for holding more volatile investments, among which cryptocurrencies inherently belong.
According to an analysis by Coinbase Institutional, the price range of $80,000 to $82,000 appears absolutely critical. This zone is where the 50-day moving average overlaps with the estimated average purchase price of spot ETF holders. If bitcoin were to fail to hold this level and decisively break below it, it would open the door to a decline toward the next technical support in the range of $73,000 to $75,000.
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Sources:
- Coinglass – data on capital flows into the BlackRock IBIT fund
- Farside Investors – statistics on US spot ETF flows (BTC and ETH)
- Coinbase Institutional – market analysis and technical support levels
- CME Group FedWatch – probabilities for the US Fed’s rate decisions
- Kryptomagazín Terminal – technical analysis and bitcoin price charts
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