Bitcoin ETFs just erased a $5.7 billion hole, but profit-taking is swallowing the new demand

According to CryptoSlate, US Bitcoin exchange-traded funds have erased their 2026 flow deficit. More than $6 billion has returned to US spot funds since mid-July, completely wiping out a $5.69 billion year-to-date deficit and pushing the annual tally to about $349 million in net inflows.

Data indicates that BlackRock's iShares Bitcoin Trust captured roughly $1.02 billion over four trading sessions. The renewed demand helped Bitcoin recover about 35% from August lows, moving from roughly $64,100 to above $85,000. This recovery returned ETF investors to unrealized profit, with an average cost basis estimated near $82,000.

Despite fresh institutional inflows exceeding $1.7 billion during the week, profit-taking has tested the bid. CryptoQuant data showed short-term holders sent approximately 47,600 BTC held at a profit to exchanges as Bitcoin failed to hold above $87,000, reaching prices as high as $87,265 before slipping back to $84,589. Santiment warned that unusually large ETF inflows have frequently clustered around local market turning points, leaving the market vulnerable if fund demand slows while exchange deposits remain elevated.