Quick Takeaways
- Bitcoin ETF inflows stay flat despite optimism over the US government shutdown deal.
- BlackRock remains the only issuer with strong year-to-date Bitcoin ETF inflows.
- Analysts see the slowdown as mid-cycle consolidation, not a market peak.
Bitcoin ETF Demand Stalls Despite US Shutdown Optimism
The Bitcoin ETF requirement has stalled even as optimism rises around the potential end of the US government shutdown. On Monday, the US Senate approved a funding bill moving the physical process closer to restoring the regime’s cognitive process after a 41-twenty-four hour deadlock.
However, the news is due to boost investor self-confidence in Bitcoin exchange-traded stock (ETFs).
Flat Inflows Reflect Weak Institutional Demand
Data from Farside Investors shows that spot Bitcoin ETFs recorded just $1.2 million in inflows on Monday, a modest figure compared to earlier months of strong institutional interest.
“Despite the US shutdown seemingly ending, and the S&P and Gold bouncing hard, Bitcoin ETFs saw no bid yesterday,” said Charles Edwards, founder of Capriole Investments. He warned that the lack of demand could signal a potential slowdown unless inflows pick up soon.
BlackRock Leads, Others Lag Behind
Standard Chartered’s head of digital assets research, Geoff Kendrick, noted that ETF inflows and MicroStrategy’s BTC purchases have been key drivers of Bitcoin’s 2025 momentum. Yet, most issuers have struggled to maintain consistent interest.
BlackRock’s fund remains the only spot Bitcoin ETF with positive year-to-date inflows, totaling $28.1 billion, while other issuers have seen cumulative outflows of $1.27 million, according to Cointelegraph.
Analysts Call It a Mid-Cycle Consolidation
Despite concerns, Bitfinex analysts describe the current market phase as a “mid-cycle consolidation,” not a downturn. They pointed out that similar corrections in June 2024 and February 2025 preceded strong rebounds.
“The present drawdown matches prior retracements of around 22% from all-time highs before reversal,” the analysts said. Around 72% of Bitcoin’s supply remains in profit, suggesting resilience despite weaker ETF demand.
Altcoin ETFs Show Mixed Trends
Other crypto ETFs also saw muted action. Ether ETFs remained flat, while Solana ETFs attracted $6.8 million in fresh inflows, their tenth consecutive day of positive performance, according to Farside Investors.
The divergence highlights a shifting trend where investors are exploring alternative blockchain assets while Bitcoin consolidates.
Outlook: Waiting for Renewed Momentum
Analysts agree that renewed inflows from both institutional and retail investors are essential for Bitcoin’s next leg upward. As the US shutdown nears resolution, markets will watch closely whether risk sentiment and ETF demand recover.
Until then, Bitcoin’s momentum remains on pause, signaling consolidation rather than collapse.