Bitcoin ETFs Erase $5.7 Billion Deficit as Profit‑Taking Dampens New Demand

US‑listed Bitcoin exchange‑traded funds (ETFs) recorded more than $1.7 billion of fresh inflows this week, erasing a $5.7 billion deficit that had built up earlier in the year.

Strong weekly inflows

Data from SoSoValue show $999 million entered the funds on September 21 and $715 million on September 22. At this rate the weekly total could surpass the year’s previous peak of $1.92 billion recorded in the week ending August 21. BlackRock’s iShares Bitcoin Trust (IBIT) accounted for roughly $1.02 billion of the four‑day inflow, according to Arkham Intelligence.

Recovery of the year‑to‑date deficit

By mid‑July the ETFs had a cumulative outflow of $5.69 billion. Since that trough, about $6.04 billion has returned, leaving a net inflow of roughly $349 million for the year, with $3.17 billion of the recovery occurring in the past 30 days (Galaxy Digital data).

Impact on Bitcoin price

Bitcoin rose about 35 % from roughly $64,100 to above $85,000 after the inflow surge began in August, according to Bloomberg Intelligence analyst Eric Balchunas. The average cost basis for Bitcoin held in ETFs is estimated near $82,000, putting the cohort in unrealized profit as the price trades above $85,000.

Profit‑taking pressure

Despite the inflows, Bitcoin slipped to $84,589 at press time. CryptoQuant data show short‑term holders moved about 47,600 BTC (worth over $4 billion at $85,000) to exchanges as the price approached $88,000, indicating heightened profit‑taking activity.

Market cautions

Santiment notes that unusually large ETF inflows often cluster around market turning points, suggesting that while strong buying can lift prices, it may also increase vulnerability once marginal demand wanes.

Outlook

Continued ETF creations could provide capacity to absorb the supply from profit‑taking holders. However, if fund demand slows while short‑term holder deposits remain high, Bitcoin may become more dependent on broader spot buying to sustain its rally.