BTC ETFs Attract $107.8 Million Inflows as ETH Sees $127 Million Outflows
BTC platform-traded funds (ETFs) registered net inflows of approximately $107.8 million on Thursday, October 23, according to data from Farside Investors. The move reversed the previous day’s mild net outflows and highlighted renewed investor confidence in BTC. Meanwhile, ETH ETFs saw sharp withdrawals of around $127.4 million, marking one of their largest single-day outflows since launch.
The contrasting flow data underscore a growing divergence between BTC and ETH investment demand. BlackRock’s iShares BTC Trust (IBIT) and Fidelity’s Wise Origin BTC Fund (FBTC) led the inflows for BTC, offsetting persistent outflows from Grayscale’s BTC Trust (GBTC). Analysts say the strong BTC inflows point to sustained institutional interest amid a volatile macro environment and a cautious equities market.
ETH ETFs, on the other hand, faced significant capital flight, with multiple issuers recording redemptions. This suggests short-term investors may be rotating out of ETH exposure as macroeconomic uncertainty looms and risk appetite remains muted. Some market strategists believe this reallocation may be driven by BTC’s stronger institutional narrative and its positioning as a potential inflation hedge ahead of upcoming U.S. Federal Reserve comments and inflation data.
Institutional shift back toward BTC
The return of inflows to BTC ETFs highlights the continued preference for BTC among institutional allocators. Since spot BTC ETFs launched earlier this year, the majority of inflows have clustered around large issuers such as BlackRock, Fidelity, and Ark Invest, with cumulative net inflows now exceeding several billion dollars. BTC’s dominance in the ETF market reflects its reputation as the most established and liquid crypto asset, appealing to investors viewking regulated exposure without the complexities of direct custody.
ETH’s struggles in recent sessions suggest a more cautious outlook from traditional finance. While ETH remains the foundation of decentralized finance (DeFi) and smart contract infrastructure, its investment products have lagged in performance and adoption relative to BTC’s. Analysts note that lower staking yields, uncertainty over regulatory clarity, and macro headwinds have weighed on ETH ETF demand in recent weeks.
Market implications heading into year-end
The sharp contrast in ETF flows could set the tone for digital asset markets heading into the final quarter of 2025. BTC’s steady inflows reinforce its status as the preferred crypto exposure for institutions, while ETH’s redemptions may signal a temporary cooling of interest in altcoin-linked investment vehicles.
Market watchers are closely monitoring whether BTC’s momentum will continue, especially as prices stabilize near the $66,000 level. ETH, by contrast, traded around $2,450 as investors reassess risk exposure ahead of potential rate policy updates.
If BTC ETF inflows remain consistent through the next several weeks, analysts predict a potential upward price trend driven by institutional accumulation and renewed retail optimism. For ETH, recovery in ETF flows may depend on broader market sentiment and improved macro visibility.
The coming weeks will determine whether the October 23 divergence marks a short-term anomaly or a longer-term realignment of institutional capital between BTC and ETH.
