Bitcoin ETFs End Four-Week Streak on Quarter-End Rebalancing: What’s Next?

U.S. spot Bitcoin exchange-traded funds turned red last week, ending a four-week streak of inflows as this year’s third quarter comes to a close.  

Last week saw $902.50 million in netflows, marking a more than 30-day low that was largely attributed to Friday’s outflow of $418.25 million, SoSoValue data shows. 

Fidelity’s FBTC product saw the largest outflow on Friday, totalling up to $300.41 million, followed closely by $37.25 million from BlackRock’s IBIT.

It’s mainly due to a “function of profit-taking and portfolio rebalancing as we approach quarter-end,” Shawn Young, chief analyst of MEXC Research, told Decrypt.

Still, Young believes there’s more room to run, pointing to how the products are being “actively traded as part of mainstream portfolio management.”

“The long-term trajectory of institutional adoption remains intact,” he said.

Bitcoin has struggled to regain the momentum it experienced in mid-August, when the asset reached a new all-time high just above $124,000.

Bitcoin’s September returns remain positive for the month at roughly 3.2% despite hitting a low of $108,600 last week. The world’s largest crypto has rebounded on the day, up slightly by more than 2% to $111,800, according to CoinGecko data.

The lack of follow-through from sellers demonstrates resilience in absorbing pressure, Young said, noting that Bitcoin is in a state of consolidation, not weakness.

“The market is essentially waiting for a clearer macro signal, and this can be from the Fed, U.S. government policy, or liquidity trends before making its next decisive move.”

And with Bitcoin typically returning more than 50% in the fourth quarter during past bull runs, the mood remains optimistic.

Young expects “heightened volatility” and a potential for “trend-setting moves” in the coming months, characterized by renewed momentum and opportunities for investors to build on their existing positions.