Four consecutive trading sessions from October 26 to 29 brought cumulative net inflows of $440.8 million into US exchange-listed spot Bitcoin ETFs. Among the new capital, one product held absolute dominance: BlackRock’s iShares Bitcoin Trust (IBIT) alone absorbed $410.6 million, accounting for 93.1% of total net inflows across all issuers during the four-day period.
This capital influx recovered roughly 57% of the funds withdrawn during two panic-driven sessions earlier. On October 22, the market recorded outflows of -$635.6 million, followed by an additional -$137.9 million in withdrawals on October 23, totaling -$773.5 million across both sessions.
Two Divergent Paths Between BlackRock and Fidelity
Data from Farside Investors shows a turnaround following a full month of net outflows. Over the 30 calendar days leading up to October 26, the ETF market registered $254.7 million in net outflows. However, behind that negative figure lay a sharp divide among asset managers: IBIT posted $961.9 million in inflows, while Fidelity’s FBTC slumped with redemptions reaching $725 million.
During trading on Thursday (October 29), the influx slowed to $17.2 million, marking an 87.5% deceleration compared to Wednesday’s $137.3 million. The slowdown in Thursday’s inflows was driven by redemptions from the Grayscale Bitcoin Mini Trust of -$15.3 million and WisdomTree’s BTCW of -$3.8 million.
Six Percent of Bitcoin Supply in Institutional Hands
Just before Binance’s hot wallet was breached on Thursday night UTC, institutional capital continued to pour into exchange-listed instruments. The influx of capital amid Bitcoin’s softening price trend highlighted a divergence in strategy between institutional fund managers and retail participants.
Total institutional holdings via US spot ETF products have now reached roughly 1.3 million BTC, equivalent to 6% of Bitcoin’s total circulating supply. This accumulation has been bolstered by the participation of sovereign wealth funds such as Mubadala and the Abu Dhabi Investment Council. Both sovereign investment entities allocate for the long term and choose not to hold assets on conventional retail exchanges.
For market participants monitoring the impact of the exchange breach, this separation of custody channels serves as a key indicator: security turmoil on retail trading platforms does not directly jeopardize institutional assets parked off-exchange.
Reported via crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
