Funds Are Buying Again Ahead of the Fed: Bitcoin ETF Inflows and Two New Franklin Templeton Funds

Funds Are Buying Again Ahead of the Fed: Bitcoin ETF Inflows and Two New Franklin Templeton Funds

Ahead of the Fed decision on October 28, US spot bitcoin ETFs went back to buying. On October 26 the funds took in about 110 million dollars of inflows, and on October 27 about 176 million.

That is roughly 286 million over two days. At the same time, the product lineup gained two unusual Franklin Templeton funds.

Flows: from outflows to inflows

The inflows followed a heavy second half of last week. On October 22 the funds lost 635.6 million dollars, and on October 23 another 137.9 million.

Two days of inflows have not yet offset two days of outflows: 286 million versus 773.5 million. But the direction has changed, and it changed right before an important decision.

In our view, this is a positive sign. Before a major macro event, funds often prefer to wait on the sidelines, yet here they are building positions again.

New Franklin Templeton ETFs: dividends paid in bitcoin

On October 27, two Franklin Templeton ETFs with unusual mechanics became effective. Both reinvest stock dividends into bitcoin.

• the first tracks the VettaFi US Large-Cap 500 Bitcoin DRIP index, with a fee of 0.09% and a portfolio of roughly 95% stocks and 5% bitcoin
• the second is built on the Nasdaq-100 index of non-financial companies

The idea is simple. The investor holds a familiar basket of large US companies, and the payouts on it gradually turn into bitcoin.

We believe hybrid products like these widen the pool of buyers. They bring bitcoin to people who would hardly go to the crypto market on their own.

What this means for basis and spreads

Inflows into spot ETFs mean bitcoin purchases to back new shares. This demand mostly falls during the US trading session.

From what we see, on days of steady inflows the spot price on US venues sometimes trades at a small premium to offshore exchanges, and the CME basis edges up. Such gaps usually do not last long.

The Fed decision on October 28 can flip the picture within minutes. Around the release, spreads between exchanges widen, funding on perps can change sign, and order books get thinner.

We believe that on a day like this it makes sense to keep a margin buffer on every leg of the trade and to calculate costs before entry, not after.

Our tools

When funds buy during US hours, prices across exchanges diverge unevenly, and the gap is easier to catch when you see every venue at once. Our arbitrage screener keeps dozens of venues in one window, refreshes quotes every second and shows each gap together with the volume actually behind it. The spread calculator helps you check what survives fees, network costs and slippage at your size. The bot is fully manual. It never connects to your exchange API keys.

To test the tools on a live market, ArbitrageScanner offers one day of free access to the whole ecosystem.

FAQ (Frequently Asked Questions)

1. What were bitcoin ETF inflows on October 26 and 27, 2026?

About 110 million dollars on October 26 and about 176 million on October 27, roughly 286 million in total.

2. What were bitcoin ETF outflows on October 22 and 23?

On October 22 the funds lost 635.6 million dollars, and on October 23 another 137.9 million.

3. What new ETFs did Franklin Templeton launch?

Two funds that reinvest stock dividends into bitcoin. The first tracks the VettaFi US Large-Cap 500 Bitcoin DRIP index with a 0.09% fee, the second follows the Nasdaq-100 index of non-financial companies.

4. When is the Fed rate decision in October 2026?

October 28. Expect spreads to widen and funding to shift sharply around the release.

Conclusion

Spot bitcoin ETFs returned to inflows ahead of the Fed: about 286 million dollars on October 26-27 after 773.5 million of outflows at the end of last week. Meanwhile, the product lineup is growing with new Franklin Templeton funds.

For an arbitrage trader, inflows mean demand during US hours and a possible uptick in the basis. The Fed decision on October 28 can change the picture quickly, so a margin buffer matters more right now than position size.

IMPORTANT! We are software developers. We do not give recommendations or promises of earnings and we do not advise you to invest your money anywhere. Our software is fully manual, all your money stays under your own control. We show examples of how our clients have earned on arbitrage in the past, but we do not advise repeating those actions one to one. Your earnings depend solely on your own actions and on market factors.