U.S. spot Bitcoin ETFs saw a $433 million surge on Friday, narrowly avoiding a second consecutive week of net outflows. S. spot Bitcoin exchange-traded funds (ETFs) narrowly avoided a second consecutive week of net outflows, thanks to a dramatic $433 million surge in demand on the final day of trading.
The late-week buying spree was just enough to push the category into positive territory with a modest $6.2 million net inflow for the week ending September 18, data from SoSoValue shows. The picture was starkly different for Ether ETFs, which saw a four-week streak of positive inflows come to an abrupt end.
Friday surge post slim bitcoin funds
The week was a rollercoaster for Bitcoin investment products, which were deep in the red before Friday’s session. Heavy withdrawals on Tuesday ($450.3 million) and Wednesday ($296 million) far outweighed Monday’s $160 million inflow, leaving the funds with a significant deficit.
A partial recovery on Thursday wasn’t enough to turn the tide, setting the stage for a dramatic Friday reversal that saved the week from negative territory.
The weekly performance of Bitcoin ETFs underscores a period of heightened volatility and shifting investor sentiment. After starting the week with a respectable $160 million inflow on Monday, the market’s mood soured significantly. Tuesday and Wednesday saw combined outflows of nearly $747 million, wiping out the previous week’s gains and putting the funds on track for their worst weekly performance in months.
By Thursday, even with a $159.5 million inflow, the funds were still down a net $426.8 million for the week. It took an exceptional final session to erase this deficit. Friday’s $433 million inflow was the largest single-day addition since September 3, demonstrating that despite mid-week jitters, dip-buying demand remains potent.
This pattern highlights the fluid nature of capital in the current market, where daily sentiment can swing dramatically based on macroeconomic signals and sector-specific news. The recent Bitcoin ETF inflows have become a key barometer for institutional and retail interest.
This performance stands in contrast to the previous week, which saw a net outflow of $462.7 million. The ability of the funds to claw back into positive territory, however slim the margin, suggests a resilient base of investors.
Total cumulative inflows since the launch of the spot Bitcoin ETFs now stand at $55.16 billion, with total net assets under management reaching $102.53 billion as of Friday.
Fidelity and BlackRock lead the charge
The dramatic turnaround on Friday was not a market-wide phenomenon but was largely driven by two of the biggest players in the space. Fidelity’s FBTC was the standout performer, single-handedly accounting for $310.7 million, or more than 70% of the day’s total net inflow. This was a significant contribution that almost single-handedly erased the week’s earlier losses.
BlackRock’s IBIT, the largest fund by assets under management (AUM), also played a crucial role, pulling in $108.4 million on Friday. Smaller positive flows were seen from funds managed by Bitwise, VanEck, and the Ark/21Shares partnership.
Over the full week, however, BlackRock’s IBIT was the top performer with $120.7 million in net inflows, while Fidelity’s FBTC netted $79.9 million. The performance of these two giants masked losses from other funds, which collectively shed about $194.4 million.
This concentration of inflows into the leading funds continues a long-running trend. While more than ten products are competing for capital, IBIT and FBTC have consistently captured the lion’s share of new investment, creating a significant gap between the top tier and the rest of the pack.
This dynamic can have a profound impact on the overall market, as a large outflow from one of these top funds can easily drag the entire category into negative territory, while a strong day can provide a market-wide lift.
Ether ETFs see positive streak end
While Bitcoin funds found a last-minute reprieve, spot Ether ETFs were not as fortunate. The funds experienced a net outflow of $140 million for the week, snapping a four-week streak of positive inflows. During that successful run, the Ether products had collected a combined $1.94 billion, signaling growing institutional interest.
The reversal last week was driven by three consecutive days of withdrawals from Tuesday to Thursday, which drained a total of $404.8 million from the funds. Even a respectable inflow of $143.8 million on Friday was not enough to offset the mid-week damage. The weekly outflow was the first recorded for Ether ETFs since the week ending August 14.
The outflows were felt across the category. BlackRock’s ETHA, for instance, attracted $114.3 million on Friday but still ended the week with a net outflow of $56.1 million. Similarly, Fidelity’s FETH saw a $26.2 million inflow on Friday but finished the week with a net loss of $25.8 million.
This indicates that the selling pressure was more broadly distributed compared to the concentrated buying seen in the Bitcoin ETF space.
Trading volumes rise amid volatility
Despite the mixed flow data, trading activity picked up significantly across both categories. Total trading volume for Bitcoin ETFs reached $16.17 billion for the week, a substantial increase from the $8.77 billion traded in the prior week. Ether ETF volume also climbed, rising to $6.82 billion from $5.14 billion.
It is worth noting that the previous week was shortened to four trading days due to the Labor Day holiday.
The increase in volume alongside volatile flows suggests an active and engaged market. Bloomberg ETF analyst Eric Balchunas commented on the resilience of ETF investors, noting in a post on X that cumulative inflows have held up remarkably well.
He described it as “incredible intestinal fortitude from the Boomers given they saw a 50% drawdown,” pointing out how a rising stock market may have helped investors maintain their positions. The flow data suggests that any recent Bitcoin price surge is being closely watched by ETF investors.
For the year, Bitcoin ETFs remain down approximately $1.45 billion in net flows. Ether ETFs, however, are still in positive territory for the year with about $922 million in net inflows.
The divergence last week provides a critical snapshot of the market, where Bitcoin’s resilience was tested and Ether’s recent momentum faced its first significant headwind, indicating a potential shift in market liquidity and investor preference between the two leading crypto assets.