Bitcoin exchange-traded funds continue to under the asset's price recovery nearly three years after their debut, but the pace of demand may not hold for much longer, according to analytics firm Ecoinometrics.

Roughly two years and nine months after spot Bitcoin ($BTC) ETFs launched in January 2024, demand for the first-ever crypto ETF appears to be gradually slowing. Even so, net inflows into Bitcoin ETFs have remained positive over the past 30 days, totaling approximately 30,000 to 40,000 BTC.

Those totals carry weight beyond their size. Since the U.S. Securities and Exchange Commission cleared spot Bitcoin ETFs to list in January 2024, the products have offered investors a regulated, exchange-traded route into the asset, and the pace of their daily purchases has become one of the most closely watched barometers of demand for it. A cooling pace therefore thins one of the more consistent sources of buying support behind the current recovery.

The pace of purchases has weakened, however, as Bitcoin recently consolidated above $80,000, suggesting buying pressure may be losing momentum. Ecoinometrics noted that the slowdown remains relatively mild compared with previous periods when ETF demand reversed sharply.

"For now ETF demand is still supporting Bitcoin's recovery. But that better not last too long," the firm said.

A rollercoaster stretch for Bitcoin ETFs

The commentary arrived amid a turbulent stretch for fund flows. According to Farside Investors, Bitcoin ETFs recorded significant volatility between Oct. 1 and Oct. 9, swinging repeatedly between net inflows and outflows.

On Oct. 1, the products posted net inflows of $102.7 million, led by BlackRock's IBIT with $195.6 million. Inflows strengthened on Oct. 2, reaching $189.9 million, supported by $158.2 million entering IBIT and $29.3 million into Fidelity's FBTC.

Sentiment then weakened on Oct. 5, when ETFs registered $89.8 million in net outflows, before flows recovered to $118.8 million in net inflows on Oct. 6.

Selling pressure intensified on Oct. 7, with total net outflows reaching $484.9 million, including $207.7 million from IBIT and $105.1 million from FBTC. Another $244.1 million flowed out on Oct. 8, led by $197.1 million in FBTC outflows. For scale, that single heaviest outflow day was more than double the window's strongest inflow day on Oct. 2, underscoring how lopsided the period's swings were.

By Oct. 9, flows had turned slightly positive at $21.1 million, as IBIT attracted $22.4 million and VanEck's HODL received $2.3 million, offsetting modest FBTC outflows. Taken together, the period highlighted weakening and inconsistent Bitcoin ETF demand, with the brief Oct. 9 recovery offering only limited evidence of renewed buying strength. Farside's daily flow tracker now serves as the checkpoint for whether that softness deepens or steadies in upcoming sessions.

Is Bitcoin losing steam to altcoin ETFs?

Flows across other crypto ETFs have seen mixed fortunes in October so far, with no single direction emerging across the wider altcoin complex, reflecting differing investor sentiment across digital assets. The split also shows how far the ETF wrapper has expanded beyond Bitcoin, with listed products now spanning Ethereum, Solana, XRP and other tokens alongside the flagship funds.

Ethereum ($ETH) ETFs recorded the largest withdrawals, with cumulative outflows reaching $634.80 million, hinting at sustained selling pressure. By contrast, Binance (BNB) ETFs attracted $98.89 million in inflows, pointing to comparatively stronger investor demand. XRP ETFs also recorded positive flows, bringing in $12.09 million during the period.

Solana (SOL) ETFs saw $29.42 million in outflows, indicating some investor withdrawals despite sustained interest in the ecosystem, while Hyperliquid (HYPE) ETFs logged modest outflows of $1.09 million.

Meanwhile, many other altcoin issuers continue to file ETF proposals with the U.S. Securities and Exchange Commission (SEC). The regulator recently approved Cboe BZX's proposed rule change, clearing a listing hurdle for 3x daily leveraged ETFs tied to Bitcoin (BITH), Ethereum (ETHK), gold (GDLU), silver (SLVK), crude oil (OILY), and natural gas (NATX). Each new listing widens the menu of crypto-linked products competing for the same pool of ETF allocations, keeping the question of where investor dollars land firmly in play.

For now, the firm said, ETF demand is still supporting Bitcoin's price recovery, though how long that lasts is another matter. The next daily flow readings — and whether the 30-day net total of roughly 30,000 to 40,000 BTC stays positive — will indicate whether the cooling Ecoinometrics flagged remains mild or builds toward the sharper reversals seen in earlier episodes.

Source: AMBCrypto