Bitcoin ETFs Post Fourth Straight Day of Inflows as US Crypto Regulation Remains in Limbo

Farside Investors data released on September 23 showed the 12 US spot Bitcoin ETFs recorded combined net inflows of $714.7 million, marking a fourth consecutive session of positive flows for the products. Morgan Stanley's MSBT led the smaller issuers with $99 million in net inflows, while Grayscale's Bitcoin Mini Trust drew $5 million and VanEck's HODL added $2.4 million. Ark Invest and 21Shares' ARKB took in a further $600,000, with the remainder of the day's inflows concentrated in the two largest funds from BlackRock and Fidelity. 

The rebound follows a volatile month for institutional Bitcoin exposure. Across the five-session period from September 14 to 18, ETFs recorded only about $6.1 million in net inflows after a sharp bout of withdrawals mid-month, including roughly $450 million in outflows on September 15 alone — the worst single day for the funds since June. Momentum has since turned decisively positive, with back-to-back sessions on September 21 and 22 pulling in a combined total well above $1.7 billion.

Bitcoin price holds above key support

Bitcoin traded near $86,624.55 as of September 22, up more than 6% over 24 hours, though the asset remains roughly 31% below its all-time high near $126,000 set last October. Market sentiment indicators leaned bullish, with a FuturesWire poll showing 82.5% of respondents bullish against 17.5% bearish, and the Fear & Greed Index registering 71, in "Greed" territory. 

SEC advances custody rules as Senate stalls on market structure bill

While ETF flows point to renewed institutional appetite, the regulatory backdrop for the US crypto industry remains unsettled. The SEC is preparing new custody rules aimed at clarifying how investment firms and broker-dealers can hold digital assets, with the proposal currently under White House review before it can be formally released for public comment. 

The push for clearer custody standards comes after Congress failed to advance comprehensive market-structure legislation. A September 15 Senate vote on the procedural step needed to move the Digital Asset Market Clarity Act forward fell short 49-50, short of the 60 votes required for cloture. Voting records showed unanimous Democratic opposition, joined by Republicans Susan Collins, Josh Hawley, Jerry Moran and Thom Tillis, while lawmakers on both sides pointed to unresolved ethics provisions and other sticking points. As of September 23, no further Senate cloture vote had been scheduled, leaving the bill procedurally alive but politically stalled.

What it means for the market

With legislation frozen, the SEC and CFTC continue to lean on existing statutory authority to fill regulatory gaps — a pattern reinforced by the Commission's broader "Regulation Crypto Assets" initiative proposed earlier this year to give crypto issuers clearer capital-raising pathways. For now, institutional flows into spot Bitcoin ETFs suggest that uncertainty in Washington has done little to dent near-term demand, even as market participants continue pressing lawmakers for a durable, comprehensive framework.