Bitcoin ETF demand stalls as US shutdown optimism fails to lift sentiment

2 hours ago

The deficiency of request for spot Bitcoin exchange-traded funds (ETFs) is raising concerns astir Bitcoin’s prospects for the remainder of the year, adjacent arsenic the US authorities appears to beryllium nearing the extremity of its 41-day shutdown.

On Monday, the US Senate approved a backing package, bringing Congress 1 measurement person to ending the authorities shutdown. The authorities is present headed for a afloat ballot successful the House of Representatives, which whitethorn hap arsenic aboriginal arsenic Wednesday, CBS News reported Monday.

Senate Majority Leader John Tune said helium hopes the transition volition instrumentality “hours, not days,” during Monday morning’s Senate meeting, according to the Military Times.

However, despite optimistic quality from the US, spot Bitcoin (BTC) ETF investments remained level Monday, with conscionable $1.2 cardinal of inflows, according to information from Farside Investors.

“Despite the US shutdown seemingly ending, and the S&P and Gold bouncing hard, Bitcoin ETFs saw NO bid yesterday,” said Capriole Investments founder, Charles Edwards, adding that this is not a dynamic we privation to spot continue.

“Risk assets usually spot a beardown bid successful the weeks retired of the Shutdown. Still clip to crook this vessel around, but it needs to turn,” Edwards wrote successful a Tuesday X post.

Spot Bitcoin ETF inflows were the superior operator of Bitcoin’s momentum successful 2025, Standard Chartered’s planetary caput of integer assets research, Geoff Kendrick, told Cointelegraph recently.

However, BlackRock’s money was the lone 1 with affirmative year-to-date (YTD) inflows among each ETF issuers, having received $28.1 cardinal portion the different issuers saw $1.27 cardinal of cumulative outflows, Cointelegraph reported connected Oct. 28.

Analysts telephone mid-cycle consolidation, not extremity of 2025 bull market

While immoderate investors are acrophobic astir the extremity of the bull marketplace cycle, analysts from Bitfinex speech spot this arsenic a “mid-cycle consolidation phase” alternatively than a cascading sell-off.

“The existent correction exhibits a operation strikingly akin to those observed successful June 2024 and February 2025, some pivotal inflection points wherever Bitcoin balanced betwixt betterment and deeper contraction,” the analysts told Cointelegraph, adding:

“The contiguous drawdown aligns intimately with the mean magnitude of anterior mid-cycle retracements, with each corrective signifier since the onset of the existent bull marketplace successful 2023 having reached astir 22 percent from the all-time precocious earlier reversal.”

Notably, astir 72% of the BTC proviso was inactive successful nett erstwhile Bitcoin dropped to $100,000, which is simply a bully awesome for a mid-cycle consolidation, but the wider betterment volition request “renewed inflows of demand” from organization and retail participants, explained Bitfinex’s analysts.