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Spot Bitcoin ETFs in the United States faced a major blow on Sept. 25 as investors pulled $258 million from the market, driving Bitcoin down to $108,700 — its lowest level in four weeks.
The sharp sell-off comes just weeks after optimism around institutional inflows boosted market confidence. Now, all eyes are on whether the key $109K support will hold, a level that could determine the short-term direction of the crypto market.
Interestingly, BlackRock’s iShares Bitcoin Trust (IBIT) was the only fund to record inflows, while all competitors suffered heavy losses. This sharp contrast underscores the fragile sentiment around Spot Bitcoin ETFs and their growing influence on overall Bitcoin performance.
Recent data shows Spot Bitcoin ETFs have faced several consecutive days of outflows. While IBIT managed to attract new investment, rivals saw significant redemptions, signaling waning confidence.
Ethereum ETFs also faced difficulties, with $251 million withdrawn in their fourth straight day of losses. Together, the numbers highlight that digital asset investment products remain under pressure.
According to Glassnode, long-term Bitcoin holders have realized profits on more than 3.4 million BTC during this cycle. Such heavy profit-taking usually appears near market peaks, raising concerns about further selling pressure on Spot Bitcoin ETFs.
Marcus Thielen of 10x Research warned: “The market is looking tired. If Bitcoin retests the $107,500 level, stop-loss selling could accelerate, potentially paving the way for a major correction.”
The current weakness has also cast doubt on hopes for a strong Q4 rally. Spot Bitcoin ETFs had been expected to fuel institutional adoption, but persistent outflows reveal ongoing investor hesitation.
Thielen added: “Many investors held their positions in anticipation of a year-end rally, but the real surprise may not be a rally but a major correction.”
Despite the sharp outflows, Binance data suggests Bitcoin’s decline still falls within the range of a natural correction. The asset has dropped 10–11% from its all-time highs of $122K–$124K — a relatively shallow dip compared to historic crashes.
Still, Spot Bitcoin ETFs remain exposed to volatility, and traders are watching liquidity closely for signs of the next major move.
CryptoQuant analysts say that unless Bitcoin breaks below $109K with losses exceeding 15%, the broader trend remains stable. They suggest a potential retest of $118K–$122K after current pressures ease.
This could become a consolidation phase for Spot Bitcoin ETFs, providing a foundation for renewed inflows later in the year.
Unlike the retail-driven surge of 2017 or the extreme volatility of 2021, the current cycle reflects a hybrid structure. Institutional inflows through Spot Bitcoin ETFs are a driving force, but simultaneous liquidations and redemptions are tempering enthusiasm.
This balance shows how institutional adoption brings both stability and new risks to the market.
Glassnode reports the Spent Output Profit Ratio (SOPR) at 1.01, indicating some investors are already selling at a loss. Meanwhile, the short-term holder NUPL metric hovers near zero, warning of possible forced liquidations.
A CryptoQuant analyst noted: “Until this support level proves its strength, investors will remain cautious.”
The near-term future of Spot Bitcoin ETFs depends largely on whether Bitcoin can hold the $109K level. A successful defense could restore confidence, while a breakdown risks triggering more withdrawals and deeper correction. For now, cautious optimism remains, but investor sentiment is fragile.
Going forward, the performance of Spot Bitcoin ETFs will continue to shape market sentiment. Holding above $109K could open the door for a rebound toward $118K–$122K.
As the most direct bridge between traditional finance and digital assets, Spot Bitcoin ETFs remain a decisive factor in Bitcoin’s journey — and the coming weeks will be critical in determining their influence on the wider market.
