Spot Bitcoin Funds Kept Buying While Post-Fed Leverage Broke

Frank Joaquin

Date: October 29, 2026

Bitcoin fell below $80,000 during Asian trading after the Federal Reserve held rates and maintained a restrictive tone. At the same time, the completed U.S. fund data showed another $137.3 million entering spot Bitcoin ETFs on 28 October. The two signals are not contradictory. They measure different capital, at different times, operating on different horizons.

The Farside Investors Bitcoin dataset shows three consecutive inflow sessions: $110.3 million on 26 October, $176.0 million on 27 October and $137.3 million on 28 October. The total is $423.6 million. Ether ETFs moved in the opposite direction, losing $88.6 million, $60.2 million and $21.4 million over the same sessions, for a cumulative outflow of $170.2 million.

By early 29 October, Bitcoin had slipped from above $81,700 to around $79,800. CoinDesk reported $356 million in crypto futures liquidations over 24 hours, including $205 million of long positions. Bitcoin futures accounted for $94 million and Ether futures for $72 million. coindesk.com

The original signal is the separation between spot allocation and leveraged positioning. ETF subscriptions remained positive through the U.S. session. Overnight derivatives traders then absorbed the faster repricing.

Three green sessions do not equal broad demand

The Bitcoin inflow was highly concentrated. BlackRock’s IBIT received $136.0 million on 28 October, while Bitwise’s BITB added $1.3 million. The other ten funds reported zero net flow. IBIT therefore supplied about 99.1% of the day’s total.

Across the three-session run, IBIT brought in $397.8 million, equal to roughly 93.9% of all Bitcoin ETF inflows in the period. Fidelity’s FBTC added $24.5 million on 27 October and BITB supplied the remaining $1.3 million. The data show persistent buying, but not a broad return across the product complex.

Bitcoin funds also have not fully repaired the previous withdrawal. They lost $773.5 million on 22 and 23 October. The latest $423.6 million recovered about 54.8% of that two-day loss. The five-session balance remains negative by $349.9 million.

Ether’s smaller outflow is still an outflow

Ether ETF redemptions slowed from $88.6 million to $60.2 million and then $21.4 million. A smaller withdrawal can indicate that selling pressure is easing, but it is not a flow reversal.

BlackRock’s ETHA lost $44.8 million on 28 October. Fidelity’s FETH gained $18.8 million, Morgan Stanley’s MSSE gained $1.0 million and Grayscale’s ETH fund gained $3.6 million. The mixed fund-level result produced the $21.4 million net outflow.

This divergence is more informative than comparing the two assets’ prices alone. Bitcoin retained one concentrated institutional subscription channel. Ether continued to lose capital in aggregate even as some competing funds gathered assets.

Why timing matters

ETF flow tables summarize creation and redemption activity reported for a completed trading session. Liquidation statistics move continuously and are sensitive to leverage, collateral and price. A fund can receive subscriptions before an overnight selloff, while a derivatives position can be forced closed minutes after a support level breaks.

Neither dataset establishes investor motive. ETF inflows are not proof that institutions expect an immediate rally. Liquidations are not evidence that every closed position was a directional long-term investor. Together they show that slower spot allocation and faster leveraged risk can move in opposite directions.

TOKEN RECON ASSESSMENT

The strongest conclusion is narrower than a bullish or bearish label. Spot Bitcoin fund demand survived the Fed session, but it was overwhelmingly concentrated in IBIT and did not prevent an overnight leverage washout. Ether’s withdrawal slowed without turning positive. Confirmation of a durable institutional recovery would require broader Bitcoin participation, continued net inflows after the price break and an end to Ether’s redemption streak. If the next sessions reverse the $423.6 million inflow run, the apparent resilience will have been a concentrated pause rather than a new allocation trend.