Bitcoin ETFs See Biggest Inflows Since Early August, Analysts Urge Caution

U.S. spot Bitcoin exchange-traded funds (ETFs) notched two consecutive days of strong inflows each exceeding $300 million, triggering renewed optimism after a bruising month of heavy outflows.

BlackRock's IBIT recorded $362.7 million in total inflows across the two days, while Fidelity's FBTC contributed $142.5 million, with FBTC leading on Tuesday and IBIT leading Wednesday, according to Farside Investors.

The inflows broke a pattern from late August, when nearly $650 million exited Bitcoin ETFs over two trading sessions.

Dean Chen, analyst at Bitunix, told Decrypt the inflows have provided "short-term support to market sentiment."

However, given August's overall net outflows, the rebound appears more like "concentrated dip-buying" rather than a decisive trend shift, he added.

Chen attributed the capital movement to "market-making arbitrage mechanisms" amplifying inflows during pullbacks, institutional investors "scaling in during the correction to lower their average cost," and rotation from Ethereum ETFs, which recorded their second consecutive day of outflows at $135.3 million.

Investors cycling back into BTC

Illia Otychenko, lead analyst at CEX.IO, told Decrypt the shift shows that investors are "reallocating funds back into BTC from ETH, as uncertainty lingers over what may follow a potential rate cut this month."

He observed that while Ethereum ETFs outperformed Bitcoin in August, "since August 28, the trend appears to be gradually reversing, with Bitcoin showing a steady increase in positive capital rotation."

Speaking with Decrypt, Maria Carola, CEO of StealthEx, said that institutions and investors “appear to be rotating into Bitcoin as a long-term hedge" amid concerns around fiat debasement.

She noted market preference for "stability and store-of-value narratives over growth and utility narratives."

The renewed interest comes as Bitcoin trades at around $110,800, down 0.4% in the last day, according to CoinGecko, and nearly 11% from its recent all-time-high of $124,545.

Options traders are positioning bullishly for the September 26 expiry, “with open interest building at $120,000, $130,000, and $140,000 strikes,” Decrypt reported earlier.

"To confirm whether the market is truly entering a reversal phase, investors will need to see continued inflows over the coming days," Chen warned, saying reversing August's broader outflow trend would require "several consecutive days, if not weeks, of sustained inflows."

Trade tensions are adding to macro uncertainty, with President Trump calling U.S.-India trade ties "a totally one-sided disaster” in a Truth Social post on Monday, while imposing 50% tariffs on the country.

QCP Capital warned in its latest report that "new tariffs could push expectations higher" for inflation, supporting Bitcoin's appeal as a hedge like analysts noted.