On Monday, September 21, Bitcoin spot ETFs recorded inflows of nearly $1 billion. However, data from CoinGlass indicates that the price of Bitcoin had already surged earlier that day due to a short squeeze, which briefly pushed the asset above $84,000. This price action resulted in the liquidation of $262.3 million in short positions within a single hour.
The timing of these events suggests that derivatives market activity, rather than ETF demand, initiated the price movement. Spot ETF flows are reported daily and reflect trades from the US cash session, which occurs after Asian and European markets have already been active. Historically, ETF flows have often tracked price trends rather than leading them, as seen during the period from September 9 to September 16.
During that mid-September stretch, Bitcoin ETFs experienced net outflows on five out of six trading days as the price of the cryptocurrency pulled back. Positive inflows resumed on September 17, coinciding with the recovery in Bitcoin's price. Currently, cumulative inflows into these funds have exceeded $56.98 billion, with total net assets across all Bitcoin ETFs reaching $107.86 billion.
Market concentration remains significant within the sector. The BlackRock iShares Bitcoin Trust holds 785,640 BTC, which is more than four times the 176,510 BTC held by the Fidelity Wise Origin Bitcoin Fund. While ETF demand may not be the primary catalyst for starting a rally, sustained inflows from market makers purchasing underlying assets can contribute to extending existing upward price trends.
