Bitcoin ETFs Pull In $1 Billion Monday: Are They Driving This Rally or Chasing It?

Bitcoin (BTC) exchange-traded funds (ETFs) absorbed nearly $1 billion on Monday, Sept. 21. But BTC had already jumped earlier that day on a short squeeze, CoinGlass data shows. Bitcoin briefly topped $84,000 that day, its first trip to that level since Jan. 31.

The move liquidated $262.3 million in short positions within an hour. The Squeeze Came Before the ETF Money That timing raises a real question about which move actually came first.

Spot ETF flows are reported once daily, reflecting trades placed during the US cash session, which opens hours after Asian and European markets are already trading. BTC’s price rise is coinciding with ETF inflows, but which is the driving force?

Image Source: CoinGlass BTC’s climb came from the day’s short squeeze, which had already pushed the price higher before any same-day ETF buying could take place. That sequence suggests the derivatives market, not ETF demand, supplied the initial spark.