Spot Bitcoin ETFs Experience Third Day of Outflows

On October 10, spot Bitcoin exchange-traded funds (ETFs) in the U.S. experienced their third consecutive day of outflows, while spot Ethereum ETFs showed a modest positive turnaround after a day of inactivity.

Bitcoin ETFs Face Significant Outflows

According to data from SoSoValue, the 12 spot Bitcoin ETFs saw outflows totaling $120.76 million on October 10, a notable increase from the previous day’s outflows of $40.56 million.

Leading the outflow was Fidelity’s FBTC ETF, which saw $149.5 million exit the fund after a day of zero net flows. Other major funds followed suit, including ARK and 21Shares’ ARKB with $30.30 million in outflows and Bitwise’s BITB losing $6.16 million.

Even BlackRock’s IBIT, the largest Bitcoin ETF by net assets, ended its five-day inflow streak with an outflow of $10.83 million. This trend suggests a broader cooling of investor appetite for Bitcoin exposure.

Grayscale, another significant player in the ETF market, saw outflows from its GBTC and Grayscale Bitcoin Mini Trust of $18.52 million and $21.16 million, respectively. Despite these negative trends, six other Bitcoin ETFs remained neutral, neither contributing to the outflows nor attracting new investor interest.

Market Reactions and Price Movements

The surge in BTC outflows coincided with a 3% drop in Bitcoin’s price, hitting a three-week low of $58,900 before recovering slightly to $60,602. This decline followed unexpected U.S. inflation data that reignited fears of the Federal Reserve pausing interest rate cuts, adding pressure to the cryptocurrency market.

This price drop also led to $198.6 million in liquidations across the market, impacting over 59,000 traders. Bitcoin’s long positions accounted for $53.3 million of those liquidations, while Ethereum traders lost $31.6 million during the same period.

The closely-watched Crypto Fear and Greed Index dropped to 32, marking its lowest level since mid-September and placing market sentiment firmly in the “fear” zone.

Ethereum ETFs Show Positive Inflows

In contrast to Bitcoin, Ethereum ETFs saw a small but notable uptick. Nine spot Ethereum ETFs recorded net inflows of $3.06 million on October 10, reversing a prior day of zero net flows.

BlackRock’s ETHA led the inflow, attracting $17.85 million in fresh capital. Grayscale’s Ethereum Mini Trust followed with inflows of $3.34 million, marking its first positive flows since September 27.

However, these gains were partially offset by outflows from Grayscale’s ETHE, Bitwise’s ETHW, and Fidelity’s FETH, which saw redemptions of $10.37 million, $4.23 million, and $3.54 million, respectively. Four other Ethereum ETFs remained neutral, neither contributing to inflows nor experiencing outflows.

At the time of writing, Ethereum was trading at $2,414, moving sideways in a market largely dominated by Bitcoin’s volatility.

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