CoinShares says Bitcoin ETF inflows do not clearly show institutional demand

CoinShares said the recent rebound in Bitcoin ETF inflows does not by itself show how much demand is coming from institutional investors. The firm noted that ETF purchases can reflect both direct bets on Bitcoin and trading strategies that do not depend on price rising. According to CoinShares, US crypto investment products drew about $4.1 billion in September, with BlackRock’s iShares Bitcoin Trust accounting for more than half of that total. James Butterfill, CoinShares’ head of research, said it is difficult to separate institutional money from retail flows in the ETF market. Butterfill said many institutions use IBIT for the Bitcoin basis trade, where investors buy spot ETF shares and short Bitcoin futures to capture the gap between prices. He also said investor interest is broadening beyond tokens, with more attention on blockchain equities and businesses tied to tokenization, payments, and trading infrastructure.