BTC ETFs See $477 Million Inflows as ETH Funds Suffer $165 Million Outflows
Investor demand for BTC platform-traded funds (ETFs) surged on Tuesday, October 21, as total net inflows reached nahead $477 million across major issuers. The strong inflow marked one of the most active trading days for BTC ETFs this month, driven by renewed institutional positioning and improved macro sentiment. In contrast, U.S. spot ETH ETFs recorded approximately $165 million in outflows, with no fund posting net inflows for the day.
BTC ETF inflows highlight institutional confidence
The largest contributions came from ARK Invest’s ARKB, which attracted $162.9 million in fresh capital, followed by BlackRock’s IBIT at $34.1 million and Fidelity’s FBTC at $20.1 million. VanEck’s HODL added $17.4 million, Bitwise’s BITB saw $8.9 million, Invesco’s BTCO recorded $6.5 million, and Valkyrie’s BRRR added $2.5 million. Grayscale’s GBTC, which had been experiencing consistent outflows since its conversion to a spot ETF earlier this year, also turned positive with $13.9 million in net inflows.
The $477 million total represents one of the strongest single-day performances for BTC ETFs in recent weeks. Analysts suggest the rebound may reflect a combination of institutional reallocation toward BTC and growing optimism around upcoming monetary policy developments. With inflation pressures easing and rate-cut expectations strengthening, BTC appears to be regaining appeal as a hedge asset within diversified portfolios.
In contrast, ETH-based ETFs saw widespread redemptions, with total net outflows nearing $165 million on Tuesday. None of the nine listed ETH spot ETFs posted net inflows during the session, signaling continued investor caution. Market observers attribute the withdrawals to ETH’s recent underperformance relative to BTC and lingering uncertainty about the network’s long-term scalability and fee structure.
While ETH remains the leading platform for decentralized finance (DeFi) and smart contracts, analysts note that competition from newer layer-1 networks and fluctuating staking yields have dampened institutional interest. The absence of inflows also suggests that traders may be rotating capital into BTC exposure as macro and regulatory conditions become more favorable to the flagship cryptocurrency.
ETF flows as a barometer of sentiment
The contrasting flows between BTC and ETH ETFs highlight the evolving dynamics within the digital asset investment landscape. Spot BTC ETFs continue to establish themselves as a mainstream entry point for institutional and retail investors viewking regulated crypto exposure. Meanwhile, ETH’s ETF market appears to be struggling to maintain momentum amid shifting market narratives and competitive pressure.
Despite the divergence, total crypto ETF activity remains elevated, underscoring the asset class’s growing role in institutional investment strategies. Analysts expect continued volatility in ETF flows as investors respond to macroeconomic data and crypto market developments heading into the final quarter of 2025.
