Bitcoin: ETFs Shed $635M, the Biggest Outflow Since June

Thursday, October 22, American bitcoin ETFs experienced $635.49 million in net outflows, their heaviest single-day loss since June 25. BlackRock and Fidelity account for nearly three-quarters of the withdrawals. In one day, this movement erased nearly 60% of the inflows recorded over the previous three sessions.

Bitcoin ETFs, inflows abruptly give way to outflows

The day before, purchases had extended to eight funds. However, as early as Thursday, the trend reversed: investors withdrew $635.49 million, erasing nearly 60% of the $1.08 billion accumulated over three sessions.

The two main funds illustrate this reversal. BlackRock’s IBIT and Fidelity’s FBTC had attracted $447.70 million on Wednesday. The next day, they recorded a combined outflow of $471.51 million. Their combined balance over these two days thus turns slightly negative.

This turnaround accompanies the bitcoin decline. After nearing $85,000 on Wednesday, the cryptocurrency slipped below $81,000 on Thursday. ETF flows tracked this decrease almost immediately.

BlackRock and Fidelity account for the majority of outflows

In detail, IBIT lost $254.05 million and FBTC $217.46 million. Together, they represent about 74% of the session’s outflows. Other funds also declined: Ark’s ARKB and 21Shares lost $109.43 million, Grayscale’s GBTC $29.53 million, and Bitwise’s BITB $27.35 million.

Only one fund escaped this trend. Morgan Stanley’s MSBT attracted $2.33 million, an inflow nonetheless insufficient to offset withdrawals from other products.

Meanwhile, trading volumes reached $2.56 billion. Net assets of bitcoin ETFs dropped nearly $5 billion, to $104.71 billion. The price decline thus amplified the assets under management downturn.

A still positive weekly balance

Despite this difficult session, bitcoin ETFs still show $442.67 million in net inflows over the week. However, the monthly balance has turned negative again, with a deficit of $174.50 million. The outflows recorded over two weeks already testify to this fragility.

Recent large flow variations suggest that investors react quickly to market movements. For now, inflows do not necessarily reflect sustained demand.

Ether ETFs follow the same trajectory. After $14.96 million inflows on Wednesday, they had $110.50 million outflows on Thursday. BlackRock’s ETHA lost $75.45 million, ETHB $17.17 million, Grayscale’s Mini Trust $10.69 million, and ETHE $9.56 million. Only Fidelity’s FETH attracted capital, with $2.37 million. Net assets in the segment fell back to $14.57 billion.

ETFs remain a major access channel to bitcoin. However, the speed of these reversals raises a question: will investors hold their positions when prices retreat?